Steel frame house mortgages
People often contact us to ask if they can get a mortgage for a steel frame property and many people have been denied a mortgage on steel framed homes.
This article will discuss steel-framed houses and offer advice on getting a mortgage on a steel framed house but the expert mortgage advisors that we work with might be able to assist you if you are looking to purchase a steel-framed home.
Click the link below to speak with a mortgage broker for mortgage advice and we will then introduce you to mortgage lenders whose lender criteria you meet.
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Can I get a mortgage for a steel-framed house?
Yes it is possible, however, this will depend on the type of steel-framed house.
Some lenders won’t consider steel frame house mortgages due to insurance and resale issues but there are others will accept more reliable steel frame constructions and these other lenders will lend for the majority of these houses.
It’s just a matter of finding the right lender, as with many other mortgage-related problems.
Before applying for a mortgage to a property with a steel frame, you will need to determine the type of construction. You can find out this information by getting a thorough survey.
All steel-framed houses may not be the same
The steel frame category offers a wide range of build quality options. The ‘Wimpey No-Fine’s design, for example, has been proven to be more reliable than many other steel frame designs.
The Wimpy style is only a part of the steel frame market. Most of the other options have not been as structurally sounded.
Steel frames can be reinforced for specific properties
Steel-framed houses can be made stronger by adding brick to the foundations. It can make a property more stable (and more accessible to mortgage) but can also be costly.
A steel frame house might require more insurance.
It can be hard to get insurance on a steel-framed house because of the uncertainty.
Although there are some specialist lenders in this area, you may be paying higher premiums than usual.
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How much deposit is required for steel framed property mortgages?
Due to the potential risks associated with steel-framed properties, you will need to make a larger deposit. Even if you have impeccable credit and the high income, they might charge you higher interest rates to offset what they consider to be the risk of lending to a nonstandard property such as a steel frame house.
Most residential mortgage lenders require a minimum deposit amount of 10%. If the property is steel-framed, you may need to deposit more. The results of property surveys and credit worthiness may determine how much you need to deposit.
What about BISF construction loans?
A large portion of the steel frame market is dominated by homes belonging to BISF (British Iron and Steel Federation).
Unfortunately, BISF houses have been known to be among the most structurally challenging types of steel-framed property.
Can I get a British Iron and Steel Federation mortgage for my house?
It might prove challenging to approach a lender for a British Iron and Steel Federation mortgage on a house.
Like other properties made of steel, BISF properties may also be strengthened with brick. This is an expensive option, but it can increase your mortgage chances.
Specialist lenders are better equipped to understand the market and may be willing to lend. They may be available through the experts we work with.
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Do you need help getting a mortgage for steel frame construction? Talk to the experts
Professional advice is highly recommended as steel frame properties are more difficult to mortgage and have additional pitfalls. We have mortgage brokers who specialise in steel frame mortgages. They can help you overcome obstacles and increase your chances of getting approved for a mortgage.
They could also save you time and money by connecting you with the right lender first and helping you negotiate the best possible interest rate.
To begin your journey click the link below.
Steel framed properties mortgages FAQs
What are the properties of a steel frame?
The steel frame house construction is a rare and popular form. It became extremely popular after World War Two. The’steelframe’ construction is one in which the frame is made from steel. This contrasts with other house frames, which can be made of timber.
Many of these properties were constructed decades ago to accommodate people who had been displaced by war. Many of these properties were built to serve a temporary purpose and are not intended to be used today.
These properties are therefore considered ‘non-standard’ by lenders. It is possible to obtain a mortgage on properties with steel frames, but it is not impossible.
Do I need to worry about resale if my steel-framed house mortgage is on my property?
Due to the above-mentioned problems with mortgage ability and insurance, selling a steel-framed house is usually more complicated. If you are looking to sell your home quickly in the future, this is something that you should consider.
If I have poor credit, can I still get a mortgage for a steel frame building?
Bad credit can limit the number of lenders willing to work with you, which can make it more difficult in a market like steel-framed properties. However, bad credit mortgage lenders may be available.
Why is steel framing so problematic?
Building quality is the main problem as different types of steel frames can have structural issues. It is, therefore, more difficult for steel frame properties to be sold and insured, making it difficult to obtain a mortgage.
Contact us today to get expert advice on a steel-framed property and getting a mortgage
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