Quick overview of mortgages and property types
The type of property you are buying has a bearing on the mortgage options available as some are higher risk than others. Anything out of the ordinary, such as a listed building or anything that wasn’t built from bricks and mortar, is likely to have higher deposit requirements and be more difficult to secure a mortgage on without expert advice.
You can read more on this in our guide to mortgages and property types.
Types of non-standard construction
Non-standard construction is one of the most common risk factors in the eyes of mortgage lenders when it comes to property types. Here are the most common types of it:
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Steel or timber-framed houses (including eco-homes)
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Thatched or felt roofs
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Listed buildings
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Prefabricated (prefab) homes, including Cornish units and Airey houses
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Concrete houses (including Wimpey No-Fines houses)
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British Iron and Steel Federation (BISF) properties
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Flat roofs
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Flats or apartments in high rises or tower blocks
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Single brick
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Glass-walled homes
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Barn, Lighthouse, or Church conversion (and other unusual conversions)
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Unusual materials like cob, wattle and daub, or straw bale
How the property type affects LTVs
Having a higher risk property type usually means lower loan-to-value (LTV) requirements and therefore having to put down extra deposit. This table show what LTV you should typically expect based on the type of property you are buying.
|
Property Type |
Typical LTV Requirements |
|
Detached or Semi-detached House |
Up to 95% |
|
Terraced House |
Up to 95% |
|
Maisonette |
Up to 95% |
|
New Build Home |
Up to 90% (Requires at least 10% deposit) |
|
Leasehold Property |
Up to 85% |
|
Listed Building (Grade II) |
Up to 85% |
|
Modern Modular Home |
Up to 85% |
|
Flat Above Shop |
75% – 85% (Depends on commercial category) |
|
Timber Framed House |
75% – 80% |
|
Flat or Apartment |
Around 75% (Deposits can be up to 25%) |
|
Multi-Unit Freehold Block (MUFB) |
Maximum 70% |
|
Traditional Prefab / Steel Framed |
Maximum 50% |
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Getting a Mortgage on a Steel Framed House
How to get a mortgage on a steel framed property
Getting a Mortgage on a Property With Cladding
Your mortgage options when buying or remortgaging a property with cladding
Getting a Mortgage on a Concrete House
Your mortgage options when buying a concrete property
Maisonette Mortgages Explained
A guide to mortgages for maisonette properties
Bungalow Mortgages Explained
A guide to mortgages for bungalow buyersMore Articles Related to Property Types
Getting a Mortgage for an Unencumbered Property
Getting a Mortgage on a Flat Above a Shop or Restaurant
Getting a Mortgage on a House With a Large Acreage
Getting a Mortgage on a House With an Annexe
Getting a Mortgage on a Property With Japanese Knotweed
Getting a Mortgage to Buy a Cottage
Getting a Mortgage to Buy an Adjoining Property
Mortgages for Ex-Local Authority Properties
Mortgages for Houses Near Petrol Stations
Mortgages for Leasehold Properties
FAQs
While many lenders are happy to mortgage new builds, they sometimes view them as a higher risk because their value can depreciate slightly once they are "pre-owned." As a result, lenders may ask for a minimum deposit of 10-15% (85-90% LTV), whereas older standard properties might be available with just a 5% deposit.
Get expert mortgage advice tailored to your property type
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY.
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