Many buyers only become aware of the issue after a survey or mortgage valuation, often leading to delays, additional requirements or a declined application. However, some construction types are much easier to finance than others — and where mainstream lenders decline, specialist finance can often provide a route forward.
At AF Credit, we specialise in financing properties that mainstream lenders struggle to accept — including non-standard construction properties, structural issues, damp, fire damage, spray foam insulation and other mortgage-restricted assets.
Yes, often you can. However, mortgage lenders are more cautious when lending against non-standard construction because these properties may be harder to value, harder to sell, require specialist insurance or carry higher long-term maintenance risks. Some lenders lend readily on certain types; others decline altogether. Where a mainstream lender declines, bridging finance can complete the purchase while specialist mortgage terms are arranged.
What Is a Non-Standard Construction Property?
A non-standard construction property is any property not primarily built using traditional brick or stone walls beneath a pitched tile or slate roof. Common examples include:
- PRC (Precast Reinforced Concrete) houses — Cornish Units, Airey houses, Wimpey No-Fines
- Steel-framed houses — BISF properties and similar
- Concrete panel houses — Laing Easiform, Unity houses and other system-built types
- Timber-framed properties — particularly older or non-standard systems
- Properties with metal or non-traditional cladding
- Certain modular or prefabricated homes
Many of these properties were built following the Second World War to address acute housing shortages. They were designed to be quick to construct and have been occupied successfully for decades — but many lenders remain cautious about them.
Why Do Mortgage Lenders Worry About Non-Standard Construction?
Mortgage lenders use the property as security for their loan. Their primary concern is whether the property will remain structurally sound, insurable, marketable and mortgageable in the future. Certain construction types have a history of concrete deterioration, corrosion, structural movement, design defects and reduced market demand — making lenders more cautious.
Which Types Are Most Difficult to Mortgage?
Among the most commonly queried types. Many lenders require evidence that approved repair schemes have been completed. Without a recognised repair certificate, most will decline.
Lender appetite varies depending on the specific steel construction system and the condition of the property. Many mainstream lenders decline without specialist investigation.
Some concrete construction types are acceptable; others attract significant restrictions. The specific system, age and condition all influence lender appetite.
Modern timber-frame properties are widely accepted by lenders. Older or non-standard timber systems may require further structural investigation before a lender will proceed.
Acceptance often depends on the specific system used, the age and condition of the property, and whether any recognised repairs or upgrades have been undertaken. Lender appetite can vary widely.
How Do Lenders Assess Non-Standard Construction?
Lenders will usually consider the construction type, age of the property, structural condition, surveyor recommendations, repair history, insurance availability and future saleability. Many lenders rely heavily on the valuation report — and a cautious surveyor can trigger a decline even where the property is in good physical condition.
What Happens If a Survey Identifies Non-Standard Construction?
A common situation occurs when a surveyor identifies non-standard construction during the mortgage valuation. The surveyor may:
- Request further investigations or a specialist structural report
- Restrict the valuation pending additional evidence
- Highlight the construction type as a concern for the lender
- Recommend specialist insurance as a condition of lending
This can lead to delays or a declined mortgage application — particularly with high-street lenders who have blanket policies against certain construction types.
Does Non-Standard Construction Affect Property Value?
It can. Properties with limited lender appetite often sell at a discount compared to traditional construction homes of comparable size and location. The extent of the discount depends on the construction type, local market conditions, buyer demand and whether the property can be financed at all by mainstream lenders.
For investors with access to specialist finance, this discount can represent an opportunity — particularly where the underlying property is structurally sound and well-maintained.
What Happens If Your Mortgage Is Declined?
A mortgage decline does not necessarily mean the property cannot be purchased. Many lenders have blanket policies preventing them from lending on particular construction types — regardless of the individual property's condition. This is where bridging finance can provide a practical route forward.
How AF Credit Can Help
AF Credit specialises in financing properties that fall outside mainstream lending criteria. We regularly assist buyers purchasing PRC properties, concrete houses, steel-framed homes, system-built properties and other non-standard construction types.
Our focus is on whether the property can be properly assessed, the exit strategy is realistic and the transaction makes sense. We will typically want to understand the construction type and condition, an independent valuation, the proposed exit — refinance with a specialist lender or sale — and any required repairs or certifications.
Using a Bridging Loan to Buy a Non-Standard Construction Property
A specialist surveyor or structural engineer confirms the exact construction type and condition — providing the documentation needed by lenders and valuers.
The exit might be refinancing with a specialist mortgage lender once investigations are complete, or sale to a cash buyer or investor. AF Credit focuses on the exit from day one.
AF Credit reviews the property, construction type, condition and exit. We can consider residential bridging where the transaction is sound and the exit is realistic.
The bridging loan funds the purchase — allowing the transaction to proceed where a conventional mortgage has been declined due to construction type.
Once the property has been assessed, any required works completed and a specialist mortgage lender identified, the bridge is repaid through refinancing or sale — clearing the short-term facility.
Example
A buyer agrees to purchase a BISF steel-framed property for £220,000. Their mortgage lender declines the application due to the construction type.
A specialist structural survey confirms the property is in good condition. AF Credit provides bridging finance to complete the purchase.
The borrower subsequently identifies a specialist mortgage lender willing to refinance the BISF property. The bridge is repaid on refinancing, leaving the borrower with long-term mortgage finance in place.
Why Investors Target Non-Standard Construction Properties
Properties affected by lender restrictions often attract less buyer competition. The pool of eligible purchasers shrinks significantly when mainstream mortgage lenders decline — leaving sellers with fewer options and creating an opportunity for buyers with access to specialist finance.
The Opportunity: Buy at a Discount, Finance, Refinance
For experienced investors, non-standard construction can represent an opportunity rather than an obstacle. The discount at purchase frequently more than compensates for the additional legwork involved in arranging specialist finance and completing any required investigations.
Frequently Asked Questions
Can you get a mortgage on a non-standard construction house?
Yes, although lender criteria vary significantly depending on the construction type. Some types are widely accepted; others attract significant restrictions. See our unmortgageable property guide for a full overview of common mortgage-restricted property types.
What is considered non-standard construction?
Any property not built using traditional brick or stone walls beneath a conventional pitched tile or slate roof — including PRC houses, concrete panel homes, steel-framed properties, system-built homes and certain timber-framed or modular buildings.
Are PRC houses mortgageable?
Some are, particularly where approved repair schemes have been properly completed and certified. Without a recognised repair, most mainstream lenders will decline. Bridging finance can be used to purchase and complete any required works before refinancing onto a specialist mortgage product.
Does non-standard construction reduce property value?
It can, particularly where mortgage availability is limited. Properties with restricted lender appetite tend to sell at a discount compared to traditional construction homes — which can create opportunities for buyers with access to specialist finance. See our guide on buying below-market-value properties for more on this strategy.
Does AF Credit lend on non-standard construction properties?
Yes. AF Credit specialises in financing properties that fall outside mainstream lending criteria — including non-standard construction houses, structural issues, damp, fire damage and spray foam insulation. Where the property can be properly assessed and a clear exit exists, we can often consider bridging finance.
If your mortgage has been declined because of non-standard construction, or you are considering purchasing a property that traditional lenders will not accept, AF Credit may be able to help. Where the property can be properly assessed and a realistic exit strategy exists, we can often provide bridging finance to complete the purchase and refinance once long-term funding is available.
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