What counts as non-standard construction, why these properties need a specialist mortgage, and how the right broker matches you to a suitable product.
When buying a property there can come a point where you need what is known as a non-standard mortgage. As a trusted, whole-of-market broker, we are here to find the solution that lets you buy the home you want, even when a high-street lender says no.
The majority of mortgages we arrange are what lenders call standard: the property is built of brick or block walls, sits on concrete foundations and has a tiled roof. Anything that deviates from this is treated as non-standard and usually calls for a specialist mortgage product.
Non-standard construction covers any building that differs from conventional brick-and-tile construction. Common examples include:
If you are buying a property that is deemed non-standard, it is well worth using a mortgage broker who can match you with a lender and product suited to that type of construction.
Properties classed as non-standard tend to need a specialist finance product because lenders consider them higher risk. Unusual construction can be harder to value, insure and resell, all of which matters to a lender protecting its loan.
If a non-standard property does not fully meet a lender's criteria, a risk-averse lender may simply decline to lend on it, and a specialist lender will need to be sought instead. On top of the mortgage, buyers will usually need to arrange a specialist buildings insurance product because of the higher risk level.
An unusual property does not mean a mortgage is off the table. It simply means the lender, product and often the insurance need to be chosen with more care. This is exactly the kind of case our specialist and complex lending team handles every week.
In day-to-day terms there is not a huge difference between a standard and a non-standard mortgage. Because non-standard properties carry a higher perceived level of risk, however, you can expect more onerous terms, which may include:
Affordability still drives how much you can borrow, so it is worth understanding the basics before you start. Our guide on how much you can borrow walks through how lenders assess income and outgoings.
When buying a property that needs a non-standard mortgage, we strongly recommend using a broker. Because a specialist product is required, a broker with access to a broad range of lenders can make sure you are recommended the most suitable solution rather than being limited to whichever high-street lender you happen to approach.
The right lender for a listed cottage, a steel-framed house or a flat above a shop is rarely the lender offering the loudest headline rate, and knowing which doors to knock on saves time, money and the disappointment of a declined application.
If you have any questions about non-standard mortgages, our team is always happy to help. Speak to an adviser who will compare specialist lenders and find the product that fits your property and your circumstances.