When we first start looking at houses to buy, whether to live in or rent out, we’re mostly interested in location, number of bedrooms, curb appeal and price.  We’re not likely to be thinking about the structure of a property and the materials used to build it.  

If the house you want to buy was built using steel frames, it will be categorised as a non-standard construction property.  That means you’ll need some specialist advice from a Bespoke Mortgage Broker that arranges mortgages for unusual properties.

What is a non-standard construction mortgage?

Mortgages for non-standard properties are different to mortgages for standard buildings that are built using bricks and mortar and have tiled roofs. If a house is considered to be of unusual construction, it’s a risk to the lender.

There are many different types of non-standard property and it’s important to know from the outset, how your property was constructed. To do this it’s always wise to request a full survey. 

You will need a non-standard construction mortgage for one of the following property types:

• homes built using steel frames
• concrete houses
• houses with thatched roofs
• listed buildings 
• other non-standard construction houses

Steel Framed Houses in More Detail

Steel framed houses were constructed as temporary housing to satisfy the housing demand after the Second World War. Although designated defective under the Housing Defects Act 1984, some are still bought and sold on today’s property market.

Unlike traditional construction, there are known structural issues with steel framed homes.  Many were built using low grade steel which is prone to corrosion.

Lenders are cautious about offering mortgages on them, particularly the most common type built by the British Iron and Steel Federation (BISF). These were clad in steel sheets and had asbestos roof coverings. 

There are different types of design and some are more reliable than others. However, they can be reinforced using bricks and mortar.  

What should I consider when buying a house with non-standard construction?

Whether you’re applying for a non-standard residential or Buy to Let mortgage, here are some things you must think about before purchasing this type of property.

• Maintenance is expensive, particularly if you need specialists to do the work.    
• Future demand and later sale can be tricky as these types of property are harder to mortgage and expensive to maintain. Reinforcing the property so it’s structurally sound will secure its future integrity and appeal to more buyers down the line.
• Insurance – because of known defects or age, you are likely to need a specialist insurer who will charge higher premiums.
• Valuation impacts – carrying out a full structural survey before buying one is wise, but costly, and may put off future potential buyers.

Are steel framed homes mortgageable?

There are specialist lenders who will consider mortgage applications on steel framed houses. To find them it’s always best to go through a Mortgage Broker that has experience of helping clients secure non-standard construction mortgages.

If the property you’re looking to buy has been reinforced, that will go in your favour.  It will also depend on the type of design, as some steel framed houses were better constructed than others.

Does it matter when the property was built?

Steel framed houses were designated defective under the Housing Defects Act of 1984.  While the majority of steel framed houses were erected after 1946, some were still being built in the 1970s. 

The later the property was built, the more modern the design is likely to be. So the age of your property may make a difference to being accepted for a mortgage.

Is it harder to get a non-standard mortgage?

Getting the go-ahead on a non-standard construction mortgage can take longer than mortgages for traditional houses. That’s because they require more intricate investigation, such as detailed surveys. 

Are they more expensive?

Be prepared to need a substantial deposit and pay a higher interest rate. This makes the mortgage less of a risk to lenders who specialise in non-standard construction mortgages as it shores them up against the longer-term viability of the property.

Loan to value ratios therefore tend to be lower and interest rates not as competitive as other mortgages. This may make the loan harder for you to afford.

How can Bespoke Mortgages Mortgage Brokers help?

Talking to us about your potential steel framed property purchase means we can help you avoid potential pitfalls that come with applying for a non-standard construction mortgage.

We have an excellent reputation for helping clients secure mortgages for unusual properties and have access to a wide range of lenders who offer mortgages for these types of property.

We’ll save you time by helping you choose the right lender, compile the paperwork with you and submit the application for you. We deal with the lender on your behalf and will do everything we can to ensure your mortgage application runs as smoothly as possible.

Contact us today to speak to one of our experienced advisers.