When purchasing a property, there can be a time when you need to get what is known as a non-standard mortgage. As a trusted, reliable mortgage broker we are here to provide solutions that enable customers to purchase their dream property.

A large proportion of mortgages that we arrange for our clients are what we call ‘standard’ and this is where properties are constructed of, for example, brick walls, concrete foundations and a tiled roof. However, anything that deviates from this is called ‘non-standard’ and therefore requires a specialist mortgage product.

Examples of a non-standard construction

We’ve mentioned above that non-standard construction is anything that deviates from a building that is made of things such as brick walls etc… A few examples of non-standard construction are:

• Listed buildings
• Thatched roofs
• Prefabricated steel
• Flats above shops
• Wood/timber properties
• Concrete or glass walls
• Some forms of eco-friendly housing

If you are purchasing a property that is deemed ‘non-standard’, you will want to consider employing the services of a mortgage broker who will be able to match you with a suitable product.

Why do some properties require a specialist mortgage?

The reason that some properties deemed to be ‘non-standard’ require a specialist finance product is because they are considered to be higher risk.

It could also be that if a non-standard construction house doesn’t fully meet the lender’s criteria, a risk averse lender may not offer a mortgage on it and a specialist lender may need to be sought.

As well as a specialist mortgage, buyers will need to arrange a specialist insurance product due to the risk level.

What’s the difference between non-standard and standard mortgages?

In general, there isn’t all that much difference between a standard and non-standard mortgage, however, with the non-standard mortgages having a higher perceived level of risk, you can expect more onerous terms including:

• Higher interest rates
• Lower LTVs
• Stricter affordability requirements

Always use a broker

When purchasing a property that requires a non-standard mortgage, we recommend always using a broker. This is because with a specialist product being required, a broker who has access to a broad range of products, will be able to make sure you are recommended the most suitable solution.

If you have any questions on non-standard mortgages, our team are always happy to help. You can contact us online or by calling 01322 553282.