Can I Get A Mortgage On A Thatched Property?

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Can I Get A Mortgage On A Thatched Property?

A thatched home is always appealing and many people dream of living in one. But what are the mortgage implications? We’re here to help you find the right lender.

Is it possible to get a mortgage on a thatched property?

Yes, of course, because there are more than 50,000 thatched homes in the UK that are bought and sold all the time. 

It can be a little more tricky to get a mortgage, because not all providers are happy to lend against a thatched property.

Why can it be more difficult to get a mortgage on these properties?

Homes with a thatched roof come into the category of non-standard construction, which just means they sit outside the norm in how they are built. Lenders therefore see them as more risky – more could go wrong that might affect the value of the home in the future. 

Many thatched cottages are also listed buildings, which limits the amount of renovation and restoration work you can do. Again, this can make it a little harder to find a lender. 

Lenders that do cover these types of buildings may have stricter criteria that can make it harder to qualify for a mortgage. You may need a larger deposit, for example. 

What are the risk factors on a home with a thatched roof?

The main issue is that thatched roofs are more vulnerable to fire damage and require more specialist maintenance and repair, which costs more.

A thatched roof is also more susceptible to leaks, which could cause water damage to the property. Because of these issues, building insurance is more expensive.

The other thing to bear in mind, which is also a concern to lenders, is that it can be harder to sell a thatched property. Not every buyer is willing to take on the additional risks.

Good points about a thatched roof

Although there are some risks, thatch brings some advantages too. First of all, because most thatched properties are located in sought after villages, they tend not to be too challenging to sell, especially if the thatch is in good repair. 

Thatch roofs are more durable than you might think. A well maintained water reed roof can last 40 years. They are also environmentally friendly and naturally effective insulators, helping the property stay warm in winter and cool in the summer.

Other factors that impact mortgage eligibility

The main things that lenders will look at in assessing your mortgage application include:

Survey details – the lender will seek a detailed survey into the property, looking at its state of repair of the roof and the structure as a whole. They will want to check that there are no issues that might affect insurance and the ability to sell the property in the future.

Loan to Value – lenders often cap the level of the loan to reduce their risk. Some won’t go above 75% Loan to Value, which will mean you need at least a 25% deposit.

Affordability – as with any mortgage, the lender will look at your income and outgoings to check that you can comfortably afford the repayments. 

Credit score – lenders on non-standard construction mortgages may be stricter about your credit history, and any past issues could affect whether you will be accepted.

Age – some lenders won’t let you borrow past retirement age, unless you can prove that you will have a healthy pension income to cover the repayments.

These factors will affect any mortgage application, but they can have more of an impact when buying a thatched home. Because there are fewer lenders, you may find that the criteria are tighter.

How a mortgage broker can help you overcome these barriers

It’s our job to navigate the mortgage market on your behalf. We’ll sit down with you and explore all the details about your situation and the type of property you hope to buy.

We work with dozens of lenders that provide hundreds of mortgage products, and there is usually a solution to most mortgage challenges.

Non-standard construction mortgages can be complex, so don’t try and tackle this on your own. We’re here to support you at every step, from finding a dream property to picking up the keys and moving in.

Approved by the Openwork Partnership on 22/02/2024