Getting a Mortgage on a Concrete House

You’ve fallen in love with a concrete property and you want to buy it. Great! But what are your mortgage options?

You may have heard that securing a concrete house mortgage is harder. This may be true in some cases, but it’s certainly possible.

This guide covers everything you need to know about getting a mortgage on a concrete home, from lenders’ appetite to the different types of concrete properties and what factors might affect your eligibility.

Can you get a mortgage on a concrete construction home?

Yes, you can, although it may be trickier than getting a mortgage on a standard property.

It’s harder because homes built using concrete are classed as non-standard construction, which means fewer lenders will approve your borrowing request.

Lenders categorise properties as either standard or non-standard to mitigate their risk in the construction of the property itself.

Traditional brick-and-mortar properties are viewed as relatively low risk in terms of maintenance and ease of reselling if the lender has to repossess the property.

Additionally, the value of a standard property typically increases over time, making it a more attractive option.

Which lenders will consider these mortgages?

Lenders generally aren’t as keen to offer mortgages on concrete-built homes as for standard brick and mortar properties. This is mainly because of the reasons outlined above. However, there are still some mainstream providers that will consider your application.

TSB, United Trust Bank, Nationwide, and Virgin Money, among others, consider applications for at least some types of concrete property.

However, rather than approaching a lender directly, the smart move is to speak with an experienced broker first. They’ll be able to identify the right lender for your specific needs – deposit size, property type, etc. – and help guide you through the application process.

Different types of concrete construction

There are quite a few different types of concrete construction, some have better reputations than others in terms of safety:

Can you get a mortgage on a concrete ex-council house?

Yes, it’s possible, but mortgage lenders will have more things to consider with ex-council properties, including:

• Whether the property is freehold or leasehold, if it’s leasehold, you may find it harder to get a mortgage if the lease is short.
• The property’s design. Lenders may be more reluctant to loan you if the kitchen isn’t separate from the main living area or if the property is too small.
• Whether it is a house or a flat, some lenders are wary of high-rise tower blocks, so you may find it harder to get a mortgage on this kind of property.

Refurbished concrete properties

There are many precast reinforced concrete (PRC) homes in the UK, most of which were built after World War Two, when there was an immediate need for affordable housing.

However, 30 years later, defects were discovered with these properties. The steel columns that formed the structure of the concrete buildings were found to be eroding, meaning that the structural integrity was put under scrutiny.

This is why many lenders began to refuse mortgages for concrete properties. They were not generally seen as acceptable security for a home loan.

How to make a concrete property more mortgageable

The most common way to do this is to have repair or refurbishment work on the property. Lenders generally view PRC properties with essential improvements completed more favourably, so you may find it easier to get a mortgage.

Currently, just three lenders – Together, United Trust Bank and Norton Home Loans – consider applications for non-refurbished concrete properties.

How a broker can help you

Getting a mortgage on a concrete construction is not as straightforward as for a standard residential property. This is where speaking to a specialist broker can really help.

Brokers can give you a holistic view of the market and determine your best options.

They have access to exclusive deals that you won’t necessarily find on the high street and may be able to negotiate cheaper rates for you.

This is where we can help. Our free broker matching service can pair you with an advisor with the right expertise in this type of lending. If you get in touch, we’ll arrange for a specialist to contact you directly.

What factors might affect your eligibility?

In addition to a lender’s general lack of appetite due to its construction, specific general criteria could affect your eligibility for a concrete property.

These include:

Get matched with a broker who specialise in concrete house mortgages

Finding the lender best placed to offer you a mortgage on a concrete property may be tricky, with only a limited number of providers available. Still, with the right guidance and expertise, you can identify the right one for your circumstances.

This is where we can help. We can introduce you to a mortgage broker who is experienced in helping people get mortgages on concrete properties.

So, give us a call on 0330 822 0505 or get in touch, and we can arrange a free, no-obligation chat with an advisor we work with immediately.