Steel-framed houses offer many advantages, from durability to quick construction, but when it comes to mortgages, they come with unique considerations. In this post, we’ll explore what buyers should know about steel-framed properties, how mortgage lenders view them, and the mortgage options available.
What Are Steel-Framed Houses?
Steel-framed houses are properties constructed using a structural steel frame instead of the traditional timber frame. Popular in the mid-20th century, they became a solution to post-war housing shortages and were praised for their quick assembly and resistance to pests, rot, and fire.
Benefits of Steel-Framed Houses
Steel-framed homes are known for their:
- Strength and Durability: Steel is resistant to common issues like wood rot and termites.
- Fast Construction: These homes can be built quickly, ideal for developments or modular housing.
- Eco-Friendly Aspects: Steel is often recyclable, and new technologies allow for energy-efficient designs.
Despite these benefits, steel-framed houses face challenges in the mortgage world.
Why Are Steel-Framed Houses Considered Non-Standard Construction?
Lenders classify steel-framed houses as non-standard construction because they differ from traditional brick-and-mortar homes. This classification means:
- Limited Lending Options: Fewer lenders offer mortgages on steel-framed properties due to concerns about resale value and maintenance.
- Higher Risk Perception: Steel can corrode over time if not properly protected, potentially affecting structural integrity.
- Specialist Mortgage Products: Many lenders require borrowers to obtain specific products designed for non-standard construction.
Mortgage Considerations for Steel-Framed Houses
For those looking to finance a steel-framed home, here are key points to keep in mind:
Structural Survey
In some cases a structural survey is required for securing a mortgage. This in-depth inspection evaluates the condition of the steel frame, checks for any corrosion, and assesses the overall durability of the home. A positive survey report can help in securing a
Lenders available
Many high street lenders will still consider lending on a steel-framed property despite it being non-standard construction, subject to valuer comments, The main considerations are factors such as location, age, and condition of the steel.
Lenders include:
- Halifax
- Nationwide
- Santander
- Principality
All are subject to valuer comments, please speak to an adviser first to ensure the most suitable lender is being recommended for the property type, age and condition.
Insurance Requirements
Some lenders may require buyers to have specific insurance coverage. Steel-framed houses sometimes need specialised buildings insurance due to their construction type. Make sure to get a quote and check that your chosen insurer covers steel-framed homes.
FAQs About Mortgages for Steel-Framed Houses
Can I get a mortgage on a steel-framed house?
Yes, there are high street lenders that will consider depending on age, location and condition – this is also subject to valuer comments.
Do steel-framed houses affect property value?
Steel-framed houses may have lower resale value than traditional homes due to fewer buyers and the need for specialised financing. However, well-maintained or modernised steel homes can still retain value.
Is a larger deposit required for steel-framed house mortgages?
No not necessarily, it is more about whether the lender deems the property suitable security following valuer comments.
Are there specific steel frame types lenders won’t finance?
Some lenders may refuse properties built with specific steel frame types that have known structural issues. A surveyor can provide detailed information on the type of steel frame used and any potential risks.
What are the benefits of a steel-framed home despite financing challenges?
Steel-framed homes are durable, resistant to pests, and have efficient construction times. If properly maintained, they can provide unique aesthetic and structural benefits.
Final Thoughts
Steel-framed houses are unique, offering both challenges and advantages to prospective homeowners. While mortgage options may be more limited than traditional, working with an Adviser to find the most suitable lender and securing a thorough survey can help in securing financing. By understanding these requirements, you can make an informed choice when considering a steel-framed home.
YOUR HOME MAY BE RESPOSSESSED IF YOU DO NOT KEEP REPAYMENTS UP ON YOUR MORTGAGE
