A non-standard construction mortgage covers anything from prefabricated steel properties, flats above shops, wood/timber properties, and can even cover more unique definitions such as properties with concrete or glass walls, or thatch and eco-friendly roofing.
How does a non-standard construction mortgage work?
A non-standard construction mortgages does works in a similar way to a normal mortgage, except the lenders see these types of properties as an increased risk, due to the fact they see them as difficult to sell, which makes them a less stable investment than a normal property.
As the demand for non-standard housing is much more limited than a standard property, lenders will find it harder to recoup their money if you end up defaulting on your mortgage payments.
The usual criteria apply, but lenders typically require higher loan-to-value (LTV) amounts and higher earnings from the applicant.
Maintenance is also taken into consideration by lenders, as these properties require much more upkeep and attention than a standard property, which, if not done properly, could decrease the value.
What about insurance?
Just like a non-standard mortgage differs slightly from a normal mortgage, non-standard insurance will be required, which means searching for specialist providers who understand the property and the risks associated.
Talk to one of our specialist advisers to discuss your options, both in terms of obtaining a non-standard construction mortgage, and getting the necessary insurance to cover the property.