People often want to know if its a bad idea to buy a non-standard construction home and is it harder to get a mortgage? If youve been turned down for a mortgage by Halifax, here are the steps you should take, "I applied for a mortgage with Halifax after seeing a great deal online, but straight away my application was declined. In fact, they prefer customers with at least two years accounts. If you have any questions, feel free to call us on 0808 189 2301, By continuing to browse our site you consent to our use of cookies. If you recently turned self-employed, theres a good chance youd have a mortgage application declined by Halifax. 10 positive effects of population growth on economic development 020 3026 3040, Pluto House, 6 Vale Avenue, Tunbridge Wells, TN1 1DJ The lender is likely to want more detailed information than they would get from a normal survey. Generally speaking, non-standard properties are considered higher risk, which makes them more difficult to finance. A standard property is built out of brick or stone walls with a roof made of slate or tile. The customer must declare that they have adequate knowledge and experience to evaluate the risks and benefits of entering into a mortgage with HSBC UK. Bradgate Park View, We are the official Financial Experts at the Ideal Home Show. Can you get a non-standard construction mortgage in Scotland? Maybe that rejection was a blessing in disguise. The remaining 10,000 is held back until some damp proofing work is completed - work that the lender perceives to be essential. Its important to remember that these lenders can consider offering mortgages for non-standard construction properties but theres no 100% guarantee that they will. We know it's important for you to have complete confidence in our service, and trust that you're getting the best chance of mortgage approval at the best available rate. Top 5 reasons Halifax decline applications, Getting a Mortgage in Sole Name When Married, Joint Borrower, Sole Proprietor Applications. As such, the insight and expertise of a whole-of-market broker like Think Plutus are highly recommended. Call 0808 189 2301 ormake an enquiry onlineand well pair you up with a mortgage expert who helps people whove been declined by Halifax every day. If the property is leasehold, then you will own a temporary right to occupy the property and the land its built on. We don't lend on freehold flats in England and Wales or Northern Ireland. Interest rate: 4.11% MER Fixed for life. Any builder you use to build your property must be registered with an acceptable Building Standards indemnity scheme, or the construction must meet our current monitoring requirements. You may be able to buy your home at a discount to its market valuation. This means there are all sorts of construction types that can fall into the non-standard category, including: In a word: yes! Read on, or listen toour new episode from The Mortgage Mum podcast is out now on all major podcast directories including Apple and Spotify. This is because theyll often consider granting an AIP after carrying out their initial checks and a soft credit search. Lenders will often want to see a structural engineers report to check the frame. Steel-framed homes are another type of non-standard construction and, yes, they are mortgageable. Yes, if you think you have grounds to appeal against Halifaxs decision to decline your mortgage, you can challenge the rejection by writing to the lenders underwriting team. Let us know the basics on our quick enquiry form, then we'll match you to your perfect broker in minutes. Watch Sarah Tucker, Shelley Walker and Sonya Matharu talking about the current housing market at FSE Week 2021. The Finance Planning Group Limited is authorised and regulated by the Financial Conduct Authority (FCA). The main problem would be come a few years down the line when you want to sell it on, if its non standard construction, Mortgage company's take a dim view on them. Speaking to the right mortgage broker is the best course of action if youve had an application rejected by Halifax, or fear that they will turn you down. - Mortgage Advisor, MD, Reviewed By: Generally speaking, putting down a bigger deposit will get you a cheaper rate and boost your chances of being accepted by a lender for this type of mortgage. That's why we only work with expert brokers who have a proven track record in securing mortgage approvals for Non Standard properties. These mortgages aren't available to first-time buyers or applicants under the age of 25. Chellaston, Some lenders would consider letting you borrow. If the property is freehold, then you will own the property and the land its built on. This is a common non-standard construction property type. I got a great deal thanks to him and I couldnt recommend him highly enough. They told me it was due to my credit history but didn't give much more detail than that. A non-standard construction house is built from materials that, unsurprisingly, dont conform to the standard definition. People often ask if they are classed as a new build which depends on the date of conversion. The remortgage service is available on most, but not all, of our remortgage products. An example of Santander Interest Only Mortgages For Over 70s for 2023: Property value: 160000. There are various lenders who will provide a mortgage on non-standard properties, but there will be strict criteria that differs from one lender to the next. Estimate your monthly payments with PMI, taxes, homeowner's insurance, HOA fees, current loan rates & more. We are an information-only website and aim to provide the best guides and tips but cant guarantee to be perfect, so do note you use the information at your own risk and we cant accept liability if things go wrong. We guarantee to get your mortgage approved where others can't - or we'll give you 100*. For more assistance with mortgaging a non-traditional construction project, contact Revolution Brokers on 0330 304 3040, or drop us a message to info@revolutionbrokers.co.uk. Standard houses have brick or stone walls with a roof made of slate or tile. My friend lives in a concrete construction ciuncil house, tried to buy it but couldn't get a mortgage due to how it was built, broker tried every mortgage company he could but nobody would mortgage it, she is trying to exchange to somewhere that is properly constructed. Ask us a question and we'll get the best expert to help. Visit the Halifax Facebook page. Pan-Tile- A roofing tile with an S-shaped profile, laid so that the down curve of one tile overlaps the up curve of the next one. Is now the right time to remortgage? Registered office: Hurstwood Grange, Hurstwood Lane, Haywards Heath, West Sussex RH17 7QX. A non-standard construction mortgage is a specific financial product that enables the purchase of a property that is constructed with materials other than bricks and mortar, has a tiled roof and concrete foundations. No, but it means youve reached an advanced stage in the process if the surveys have come back without any issues. Halifax will not approve a mortgage on a timber framed property if insulation is between the cladding and frame. If you would like support with your mortgage or insurance, contact us online we would love to help you. There are more than 200 varieties of timber frame properties on the market, so its difficult to talk about them in any depth. We'll consider lending on a property that is not part of one of these schemes if it comprises of a development of no more than 15 properties and meets our current monitoring requirements. That said, Halifax are known to cater for. It won't impact your credit score. 4.8 out of 5 stars across Trustpilot, Feefo and Google! A DTI of 36% or below is generally seen as 'healthy', but non-standard construction mortgage lenders may request a DTI of 30% or below, which demonstrates a high level of disposable income. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. The mortgage experts we work with have enjoyed helping hundreds of young people all over the country successfully secure their first home. This income multiple is not widely available to customers who are applying directly with a lender. If you rent your home from your local authority or a registered social landlord, you may have the Right to Buy your home under certain conditions set out by your landlord. If you want to speak to an adviser in branch you'll need to book an appointment. Because property type can vary so hugely under the non-standard construction umbrella, there isnt one single mortgage product that is offered by a defined number of lenders. Compare The Best Mortgage Rates Top 24 Lenders Ranked. Petes presence in the industry as the go-to for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. Online Mortgage Advisor is a trading name of FIND A MORTGAGE ONLINE LTD, registered in England under number 08662127. Cob is another classical English construction style that was quite prominent in Cumbria and the Southwest of England. It is our purpose to help improve the lives of our patients on a one-to-one basis. They will offer any advice specific to you and your needs. Your outgoings may also have been factored into the equation, especially if you have other substantial financial commitments. I found Online Mortgage Advisor who offered fantastic but specific insight to my issues. The key issues with non-construction properties come from the extra inherent risk to lenders, which is why you can expect to pay slightly higher interest rates and be subject to a more rigorous application process. Whatever needs to happen to get your mortgage over the line, whether thats a re-negotiation, an appeal or a fresh application with a different lender, using our free broker-matching service will increase your chances of a successful outcome , You are self-employed with just one years accounts, You want to borrow more than 4.5x your salary, Youre purchasing a non-standard property, You are classed as having higher appetite for risk eg: gambling, With the exception of first-time buyer products that Halifax, , the lender typically offers residential mortgages with a maximum loan-to-value (LTV) ratio of 85%, which means youll need a, For most residential mortgage borrowers, Halifax cap their lending at 4.75 times the applicants income. If you are considering a non-standard construction mortgage, you should keep the following in mind: Many types of non-standard construction require special maintenance or treatments that can be expensive. A broker can also help navigate any specific requirements relating to your property and help you get together any specialist documentation. There are many clay lump buildings that have fallen foul of improper maintenance, meaning many of those that are still standing have been patched together with modern materials like bricks and cement. And keep in mind, if the deal isnt salvageable, your mortgage advisor could track down an even better one elsewhere. PRC homes - also known as prefabricated or prefab homes - are classed as non-traditional construction, which makes the process of buying one fraught with difficulty. Bezant House, For example, if your house is worth 220,000 you can get 132,000. Halifax tends to be more cautious in their approach, excluding certain kinds of pre-cast reinforced concrete, as well as properties that have had their frame cavities filled. Visit the Halifax Youtube channel. The difficulty with non-standard construction mortgages is that the property type and construction can be so different from one home and another that its hard to apply the same criteria across the board. A non-standard construction house is built from materials that do not conform to the 'standard' definition. With less demand for non-standard construction properties, lenders worry that they will struggle to recoup their losses if forced to repossess the property. Your survey will then be able to go into more detail. Prefab/modular houses are non-standard construction. That said, Halifax are known to cater for first-time buyers, low-income customers and even people with certain credit issues. It has been recognised recently as a green building technique, which has led to something of a resurgence. There are brokers in our network who occasionally have access to exclusive deals with Halifax, but if you dont meet their criteria, they could help you find an alternative mortgage provider with a more flexible lending criteria. Bradgate Park View, Aaron went above and beyond. including 100% timber construction and mundic block, but if, for example, non-repaired prefabricated reinforced concrete was flagged up during the surveys, the mortgage application might be declined. 'Non-standard' construction is a significant category in the property market. The customer must provide documentary evidence of income and assets, and adherence to all three criteria must be recorded in notes. This is because, depending on the type of property you want to purchase, you may require a specialist mortgage lender that only operates through intermediaries. 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