Timber Construction Mortgage

What is a timber framed property?

It’s largely as it sounds. Most properties are traditional brick homes. Timber framed properties are built around a frame of timber. It’s where wood is the base for the house, basically.

Is it difficult to get a mortgage on a timber-framed house?

Securing a mortgage on a timber frame property is relatively straightforward. It just comes down to valuers’ comments. If the property is in a state of disrepair, we would need to have a proper damp and timber report done to check the structural integrity of the property.

Assuming that’s fine, a lot of lenders will cover these off, and the products and rates will be fairly standard. Even some high-street lenders will look at them these days. You just need to know which banks to speak to.

What are the different types of timber framed houses? Are there different types?

You come across things such as open panel, closed panel or post and beam. Realistically, you probably see a closed panel more often, where everything is hidden. It can mean that any issues with that timber frame aren’t always obvious to you as the client.

But that’s where the reports come in. A valuer goes around and will do tests and checks to advise you. It depends when the property was built, where it was built and how much timber is in them.

Why are some lenders reluctant to offer mortgages for these properties? Will many lenders offer a mortgage for a house with a timber frame?

There are different styles and construction types within that timber frame. If it’s a property with big beams going across the ceiling, it’s a lot easier to check the structure and temperature.

If they need replacing in more modern houses, those won’t be load bearing – they’ll just be aesthetic. So, again, there are fewer issues if they do need replacing. Lenders are more likely to be cautious with older style timber frames where the frame itself is timber and the property it built around that.

If they’re very old, it’s hard to determine overall structural integrity. And if the house falls down, you’d have a mortgage on a property that isn’t there anymore. It’s a risk to a lender. That’s why some won’t touch timber framed or non-standard construction types. But a large portion of the market will.

What lending criteria do I need to meet for a timber framed property?

You need to meet all the typical mortgage criteria that we usually touch on – so proof of income if it’s residential, or confirmation of rental income if it’s a Buy to Let. Your credit report needs to be in good condition. If it’s not, it will change who we use for lenders.

Deposit size, we can go to 90% or 95% on residential these days. For Buy to Let, a 75% Loan to Value is fairly standard. But with the actual application itself, there’s not a great deal of difference for you as the client.

How much deposit will I need for a timber framed house mortgage? Do I need a higher deposit? How much can I borrow?

It varies depending on whether it’s residential or Buy to Let. With Buy to Let you’ll need a larger deposit than with a residential.

One thing to be mindful of is the condition of the property. If it is in generally poor condition and needs a lot of refurb work there might be a Loan to Value cap, in both residential and Buy to Let. The lender might not want to lend you 95%, for example, on a house in poor condition. You might get a retention on that mortgage if there are works to do.

Be mindful of the value, too. Properties in very low value areas sometimes aren’t that appealing to lenders from a saleability point of view. If they ever have to repossess a property and sell it to recoup their money, properties in a poorer area can be difficult to sell. The loan to value might have a restriction in that case.