Non-Standard Construction Mortgages – Concrete Houses

Looking to buy a home built with concrete? You may find it challenging to find a lender to accept you. We have lots of experience in finding clients a non-standard construction mortgage, so let us help.

What is a non-standard construction?

A non-standard construction home is anything that’s different from the norm in UK house building. The vast majority of homes here are built from bricks or stone, with a slate or tile roof. 

Anything outside of that can make lenders nervous about the level of risk they’re exposed to, so many won’t cover non-standard properties. You may need to find a special mortgage. 

Why is it hard to get a mortgage on a concrete home?

A mortgage lender uses the property you’re buying as security for the loan. If you can’t repay your mortgage for any reason, they could repossess the home and sell it to get their money back. It’s important, then, for the lender to know that the house is structurally sound and will be easy to sell. 

There have been structural problems with some concrete homes in the past, especially with the prefabricated, temporary homes that were put up in their thousands after the Second World War. This deterred lenders from offering mortgages on concrete properties. 

More modern homes have successfully used concrete as a building material, but because it’s still fairly unusual, it can be more difficult to find a mortgage.

What mortgage options are there for concrete houses?

With concrete built homes, there are a number of recognised types. The category of home can make a difference in their mortgageability. 

Generally, lenders are more likely to accept properties built with In Situ Poured Concrete (IPC) or Precast Reinforced Concrete (PRC) techniques, especially if they have been repaired and renovated. Properties built with the Large Panel System (LPS) are particularly difficult to mortgage. 

What are the main types of concrete houses?

The most widely recognised types, most of which are post-war prefab homes, are: 

Cornish Units – mainly found in the South-West. Lenders usually require these types of properties to have been refurbished under an approved scheme.

Taylor Wimpey No Fines – These are not as strong as other concrete structures, which can cause issues with mortgage applications. But if certified repairs have been completed some lenders may accept this type of property.

Woolaway Construction – Woolaway built different types of houses, including bungalows, terraced and semi-detached houses. Concrete frames and panels were used to make construction faster. Lenders usually want a certificate to prove that this type of building has been strengthened.

Hawksley – these homes are harder to spot as they have bricks as an outer layer, built around reinforced concrete beams. Again lenders may accept a Hawksley home if it has been part of a PRC repair scheme.

Reema – These concrete homes were built with PRC panels and were often put up for local councils to meet housing demand quickly. Again, most properties will need renovation work to be eligible for a mortgage. 

Other recognised concrete home builders include: 

• Dorran 
• Orlit 
• Unity PRC 
• Airey 
• Wates Group 
• Whitson Fairhurst 

What other factors would affect my ability to get a mortgage on a concrete house?

Because fewer lenders will give you a mortgage on a non-standard construction property, there is less choice, and you may find that makes mortgage criteria stricter.

You will often need a larger deposit, for example, of 15% to 20% or more, to help reduce the risk to the lender. You may need a good credit record and meet certain age restrictions. 

Another factor is whether or not the home is detached. If it adjoins another property, you may need proof that the other home has had the required structural work completed too. 

How can a Mortgage Broker help?

Getting a mortgage for a concrete-built home is possible, but because it can be challenging, do seek support from a professional advisor. 

We will explore all the details about the property and your specific situation to recommend suitable mortgage options. We’ll check you understand all the pros and cons of buying this type of home, including checking that you can get insurance, and we’ll support you throughout the process to achieve your goals.

Approved by the Openwork Partnership on 21/02/2024