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Mortgage Advisor & Director
Can I get a mortgage for a steel-framed house?
It can be difficult to secure a mortgage on a non-standard construction property.
You may be asking, what classes as non-standard construction? The term 'non-standard' generally applies to anything that is not constructed from brick and mortar - accounting for a large portion of the property market.
If you have your heart set on a steel-framed property, don't despair.
You will be pleased to learn that there are in fact, specialist lenders who are prepared to lend on non-standard construction properties.
As a whole-of-market independent broker, at Teito, we have access to great deals from these specialist lenders. Complete our simple online form today to get started or carry on reading to learn more.
What is a steel-frame house?
Built following World War Two, when demand for new housing peaked, steel-framed homes were quick and cheap to construct and were fairly durable. They were very popular at the time. They have since been criticised for lacking structural integrity and insulation; as they were only build to provide temporary accommodation.
That being said, with all types of house construction, the quality varies significantly, and we would recommend enlisting a specialist surveyor to confirm the integrity of the build.
In some situations, it is possible to reinforce the foundations of the structure with brick, although it can be an expensive process.
Why can it be harder to get a mortgage on a steel-framed house?
By categorising properties as standard or non-standard, lenders are seeking to mitigate their risk in the property construction itself. Brick and mortar properties are seen as low risk in terms of maintenance and re-sellability. Their value typically increases over time.
Generally, non-standard houses are seen as a higher risk investment both in terms of securing both a mortgage and appropriate insurance.
Are there any differences in a steel-framed property mortgage?
You may find that lenders mitigate their risk on the steel-framed houses by enforcing stricter lending criteria, requiring a more substantial deposit contribution and offering less competitive rates.
The actual term of the mortgage offered may be shorter than on a standard construction home.
At Teito, our experienced team of advisors have helped many people like you to secure the best mortgage deal possible on their steel-framed home. Complete our online form today to get started!
What about selling the property?
Although you have fallen in love with a non-standard home, it doesn't mean that everyone will. There is likely to be a particular niche for your property, meaning the pool of willing buyers is smaller.
Don't forget about insurance
You will find that insuring non-standard properties can be more painful and expensive in comparison to standard homes.
With maintenance more involved and the pool of suitable contractors reduced, it is worthwhile investigating the cost and availability of insurers ahead of making the sale. Our advisors at Teito can help with this.
Get a specialist surveyor
For non-standard construction buildings, surveyor feedback can make a huge difference to the mortgage provider's decision and subsequent offer.
For this reason, try to make sure you find a surveyor who is familiar with the type of construction and who can make informed comments back to the lender.
Contact our team today
Our team of experienced advisors can recommend specialist lenders for the steel-framed houses.
As a whole-of-market service, we can access deals not accessible to the general public, including lenders who specifically deal with non-standard construction houses.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
