Non Standard Construction Buy to Let
- Access to over 100 lenders
- Access to exclusive deals not available on the high street
- Range of products to suit both personal and business needs
What's On This Page?
Get In Touch
Non Standard Construction Buy to Let
Jess Pearson explains how the Buy to Let mortgage process works for non-standard construction properties.
Can you get a Buy to Let mortgage on that standard construction and is it harder to get a Buy to Let on non standard construction property?
Yes, you can, but it may be more difficult than if you’re buying a property of standard construction, due to the criteria lenders have surrounding specific property types.
Certain properties may be subject to higher rates, to reflect the risk to the lender. Speak to an adviser so they can advise you on any eligibility requirements.
What lending criteria do I need to meet for a Buy to Let mortgage on a non standard construction property?
As standard, lenders will require at least 20% to 25% deposit and they will look at factors such as resalability and the comments provided from their valuer, who they’ll instruct once an application is submitted. This is to assess whether the property is within their risk appetite, which differs from lender to lender.
Your advisor will inform you of any specific criteria you’ll need to meet, once they’ve researched the most appropriate mortgage for you.
Can you get a Buy to Let mortgage on all types of non standard construction property?
It’s difficult to say whether you can get a mortgage on all types of non standard construction, as there are so many different types out there. However, your advisor will be able to research it for you and tell you with confidence whether a particular property can be mortgaged or not.
What deposit is needed for a Buy to Let mortgage on a non standard construction property?
Lenders usually require a minimum of 20% to 25% deposit on a Buy to Let. However, this could be higher depending on the type of construction and the lender in question, due to their differing criteria and risk appetites.
What other costs are involved here? Are Buy to Lets mortgages on non standard construction properties more expensive?
Lenders may charge higher interest rates on properties of non standard construction. There could also be other higher costs, depending on the lender. Lenders tend to charge higher fees to reflect the risk they’re taking on, including their product fees, application and valuation fees.
Your advisor will provide you with the costs in advance, to ensure you’re fully informed and aware of these before applying.
Can I still get a Buy to Let mortgage on a non standard construction property with bad credit?
Some lenders will consider applicants who don’t have strong credit history, whilst also being able to accept non standard construction properties. Again, these may come with higher fees and costs.
Speak To an Expert
What if I’m a first time landlord, can I still get a Buy to Let mortgage on a non standard construction property?
Although it may be more difficult to get a Buy to Let as a first time landlord, there are lenders who can consider this alongside non standard construction properties. Getting a mortgage will depend on a combination of other factors, however, such as your personal circumstances and criteria surrounding the specific construction type.
Are there any restrictions on renting out a non standard construction property? What are the pros and cons?
Non standard construction properties may be more attractive to potential renters, due to the added character the property brings, which could result in higher rental yield. They could also end up being cheaper to buy, yet rent for the same as standard construction – again offering the potential for a higher yield.
There are potential drawbacks, too, such as the possibility of higher maintenance costs and higher running costs, particularly on utilities if the property is not as energy efficient. Some properties may also be more difficult or expensive to insure, which could eat into your rental yield.
How does remortgaging non standard construction Buy to Let property work?
If you’re remortgaging to a different lender it would work in the same way as for standard construction property. Your advisor would again conduct research into the most suitable products and lenders for you, and whether it’s worth remortgaging.
As part of the research, they check if the lender is comfortable with the type of construction, to ensure the chance of an application being accepted.
How does the application process work?
There isn’t any difference compared to remortgaging a property of standard construction. The lender will complete their underwriting process and instruct the valuation of the property. They will rely on comments made by the valuer as to whether the property is suitable security for them, and if it’s within their risk appetite.
How can a mortgage broker help?
A mortgage adviser can talk to lenders prior to you applying, and check their criteria to ensure both you and your property have a chance of being accepted. Given the different stance lenders can take, I would definitely recommend speaking to an adviser, so they can advise you on the most appropriate mortgage option for your individual circumstances.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE SOME FORMS OF Buy to Let.
THERE MAY BE A FEE FOR MORTGAGE ADVICE. THE PRECISE AMOUNT OF THE FEE WILL DEPEND UPON YOUR CIRCUMSTANCES, BUT WILL RANGE FROM £99 TO £549 AND THIS WILL BE DISCUSSED AND AGREED WITH YOU AT THE EARLIEST OPPORTUNITY.
ASSET HARBOUR MORTGAGE AND PROTECTION LIMITED TRADING AS ASSET HARBOUR MORTGAGE AND PROTECTION ARE AN APPOINTED REPRESENTATIVE OF HLP PARTNERSHIP LIMITED, WHICH IS AUTHORISED AND REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
