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Concrete Construction Mortgage
Scott West explains how mortgages on concrete properties work and what to be aware of. Podcast recorded in October 2024.
Is it harder to get a mortgage on a house made with concrete?
You can get a mortgage on a concrete house, but it can be a little bit more challenging. It depends on the type of construction, as we’ll come on to later. They’re often viewed as a bit risky by lenders, so it will change the lender choice. You may need to address some structural issues with the property.What are the different types of concrete construction properties? Can you get a mortgage on a concrete ex-council house?
Concrete construction types tend to include precast concrete, in situ concrete and system built homes like prefabs, and there are a few other types as well.Most of these are seen in post-war developments in large parts of the country. You often find these types of houses in estates where the majority of houses are of a similar construction type.
Ex-council concrete homes are fine for a mortgage, it just changes who we use for a lender. There are a couple of caveats – if it’s a flat, for example, how much of that block of flats is primarily owned versus council owned? We will also need reports on the building, the exact construction type, where it is and various other points.
Can I get a mortgage on a refurbished concrete property?
Refurbished concrete properties can be slightly more appealing to lenders, particularly if they’ve had remedial work done to bring them up to current standards.But the majority of lenders are fine with them anyway – and if not, we steer away from those at the point of application. Mortgage availability on concrete homes is quite high these days and generally a lot of lenders now accept non-standard construction.
What are the advantages and disadvantages of concrete properties?
Advantages include that concrete is a large solid structure, it’s fairly sound and good for insulation, both for sound and heating.Typically you’ll find these properties in slightly lower value areas, which can mean they are good value for money.
The disadvantages are that you can’t use every lender, and you might end up with Loan to Value restrictions depending on the lender and your circumstances. Some of these properties can be prone to structural problems, depending on what type they are and when they were built.
Are non-standard concrete properties more expensive?
Typically, no. People don’t build houses that way anymore. So if you’ve got a non-standard construction type, specifically the concrete builds, they’re likely to be fairly old and in areas where there are large developments of a similar construction type – so you’ll probably get good value for money. They’re not going to be very expensive houses, they’re not in prime areas.Do many lenders accept this kind of property? What eligibility criteria do I need to meet?
There will be a few lenders who won’t like that type or won’t like the area – maybe they’re overexposed locally. Maybe it’s a block of flats, in which case restrictions might apply for certain lenders.But a large number of lenders will look at non-standard construction, and specifically concrete. They’re not necessarily specialists, so the rates aren’t going to be too different from what you would see on the high street. The criteria and products should be very similar.
Unless there are other mitigating circumstances, the Loan to Value requirements should be similar too. Deposit requirements should be the same because of that.
There’s nothing really to fear with these types of properties. There’s a lot of evidence in the market that banks are going to continue to lend on these, because more lenders are adding it to their panels.
How can a broker help with a concrete construction mortgage? Is there anything else you’d like to add?
Presentation is a very big key point when taking these to lenders. It’s so helpful to have a broker that understands your full requirements and knows which lenders are most receptive to that.If there is anything with your case that needs a second look, or a nudge in the right direction with the lender, that’s where a broker can help. We can step in and make sure the lender sees all the good points of the case, to get it through to completion for you.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.