Homes built in unusual ways can be harder to mortgage than standard brick-and-tile properties, because lenders view them more cautiously. This guide explains non-standard construction mortgages: what counts as non-standard, why lenders are wary, which properties are affected, and how to approach buying or mortgaging one.
Standard versus non-standard construction
A standard construction home is built with brick or stone walls and a tiled or slated roof, which most lenders are comfortable with. Non-standard construction is anything that differs from this, such as timber frame, concrete, steel frame, thatch, or various prefabricated types. Because these are less common and sometimes carry particular risks, lenders treat them differently, which can affect the choice of mortgage and the deposit required.
Why lenders are cautious
Lenders are cautious about non-standard construction because some types can be harder to value, maintain, insure or resell, and a few have known durability problems. The lender's concern is partly whether the property is good long-term security for the loan, as our guide to loan-to-value (LTV) explains. This caution means fewer lenders may offer a mortgage, and they may require a larger deposit or a detailed survey.
Examples of non-standard construction
Non-standard construction covers a wide range: timber-framed houses, concrete-built homes, steel-framed properties, thatched cottages, homes with flat roofs, and prefabricated reinforced concrete (PRC) houses, among others. Some, like good-quality timber frame, are widely accepted, while others, like certain PRC types, are viewed more cautiously. The specific type matters greatly, since lenders treat each differently based on its reputation, durability and how easily it can be valued and resold.
PRC and defective property
Some prefabricated reinforced concrete homes were designated defective under past legislation, because of construction problems, making them hard to mortgage unless repaired to an approved standard. If a PRC home has been properly repaired with the right certification, more lenders may consider it. Understanding whether a non-standard home has any such history, and whether remedial work has been done and certified, is important when considering a mortgage on it.
Fewer lenders and bigger deposits
For non-standard construction, fewer lenders may be willing to lend, and those that do may require a larger deposit and charge a higher rate, reflecting the perceived risk. The exact terms depend on the construction type and the property's condition. So buying a non-standard home can mean a narrower choice and stricter terms, which is worth factoring into your plans and budget when considering such a property.
The importance of surveys
A thorough survey is especially important for non-standard construction, to assess the property's condition, the construction type, and any issues, as our guide to listed and period properties relates for unusual homes. A detailed survey protects you from unexpected problems and helps the lender lend with confidence. For non-standard homes, paying for a proper, sometimes specialist, survey is a wise investment before committing.
How to approach it
To buy or mortgage a non-standard home, identify the exact construction type, get a thorough survey, and approach lenders or a broker experienced with that type of property, as our guide to how a mortgage works relates. A broker can match you to a lender comfortable with the construction. With the right lender, survey and deposit, many non-standard homes can be mortgaged, though the process takes more care than a standard property.
Timber frame in detail
Timber-framed homes range from historic oak-framed houses to modern timber-frame construction behind a brick or render outer skin. Good-quality, well-maintained timber frame is widely accepted by lenders, while older or exposed timber frame may need more scrutiny. So timber frame is not a single category: the age, type and condition matter, which is why identifying exactly how a timber-framed home is built is important when seeking a mortgage on it.
Concrete and steel frame
Concrete-built and steel-framed homes vary widely in how lenders view them. Some modern steel-frame and concrete construction is well regarded, while certain older concrete types, particularly some system-built homes, are viewed cautiously due to durability concerns. As our guide to loan-to-value relates, lenders may require a larger deposit. Establishing the specific construction system, and its reputation, is key to knowing which lenders might consider it.
Thatch and other features
Some properties are non-standard because of particular features, such as a thatched roof, which is characterful but needs specialist maintenance and insurance, or extensive flat roofs, which lenders sometimes treat cautiously. These features affect insurance and upkeep as well as the mortgage. Understanding the implications of a non-standard feature, and budgeting for any extra maintenance or insurance it brings, is important before buying such a home.
Insurance for non-standard homes
Non-standard construction often requires specialist buildings insurance, which can cost more, reflecting the particular materials and rebuild requirements, as our guide to period property insurance relates. Lenders typically require adequate buildings cover as a mortgage condition. Arranging suitable, sometimes specialist, insurance, and factoring in its cost, is part of owning a non-standard home, alongside the mortgage and any higher maintenance costs.
Reselling a non-standard home
Because non-standard homes can be harder to mortgage, they can also be harder to sell, since your buyer may face the same lending challenges. This can affect how quickly the home sells and to whom. Bearing in mind the resale position, and that the pool of buyers may be smaller, is worth doing before buying a non-standard property, as it affects the home's liquidity as well as its mortgageability.
Getting the right survey and lender
The two most important steps for a non-standard home are a thorough, often specialist, survey to confirm the construction and its condition, and approaching a lender or broker experienced with that construction type, as our guide to how mortgages work relates. The survey gives you and the lender confidence, while the right lender means the property's construction is assessed fairly rather than simply declined, which is often the difference between success and frustration.
Non-standard need not mean impossible
While non-standard construction adds complexity, many such homes can be mortgaged with the right approach. By identifying the exact construction, obtaining a proper survey, arranging suitable insurance, saving a sensible deposit and using a knowledgeable broker, buyers regularly secure mortgages on non-standard properties. So an unusual construction is a reason for care and the right lender, rather than an automatic barrier to owning a home you love.
With the exact construction identified, a proper survey done, suitable insurance arranged and a knowledgeable lender approached, a great many non-standard homes prove perfectly mortgageable, so an unusual build is a reason for extra care rather than an automatic no.
Approach it methodically, lean on a broker who knows the construction type, and most concerns about lending on a non-standard home can be resolved well before you reach the point of completion.
In short
Non-standard construction means homes built differently from brick or stone with a tiled roof, such as timber frame, concrete, steel frame, thatch or prefabricated types. Lenders are cautious because some are harder to value, insure, maintain or resell, and a few have durability issues, so fewer lenders may lend and larger deposits and surveys are often needed. The construction type matters greatly, and a specialist broker and survey help.
Where to get help and next steps
Read our guides to listed and period property mortgages, what loan-to-value means, and how a mortgage works. Our guide to self-build mortgages is also worth a read. This is general information, not mortgage or financial advice.