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?
Non-standard construction mortgages work in a similar way to a normal mortgage, except the lenders might 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.
Contact us to discuss your options, both in terms of obtaining a non-standard construction mortgage, and getting the necessary insurance to cover the property.