Lending criteria - Info request

Superman809

Hi

I'm a few years removed from mortgage advice and am looking to get some information as it seems more difficult than I remember to get hold of lender's criteria.

Mother is looking to buy her house.
- Right to buy
- Non standard construction: tin prefabrication.

Are there currently lenders which will use the purchase price in LTV calculations? Looking at £42k loan, value £80k approx; may be able to buffer this if required, but preferably would use these numbers.

Thanks for any information that you have.

FWIW I'm sure I remember coming up with a small pool including Leeds BS and possibly Skipton. This was around 2008.

kingstreet

Lenders will typically offer upto 100% of the discounted purchase price on a RTB with little hesitation.

However, a non-standard construction will need to be checked by the lender's surveyor to ensure it provides adequate security.

You'll need to know the year of construction and the method/name before applying.

kingstreet

I can find no reference to "tin prefabrication" in any of my guides.

Are you sure this is accurate?

It may be worth a call to the Council to establish the exact method and builder's name. For example;-

Conder Kingsworth Metric - Steel
Craig-Atholl - Steel
Gateshead Experimental - Steel.

Superman809

Thanks very much for your prompt responses.

I'm not sure of accuracy of my claims; quick Google search suggests BISF construction; it originally had a tin cladding which is either covered/replaced now (i assume covered).

Will probably need to go through her paperwork/call the council to find out any more than that, but we think it was a 1960s build.

kingstreet

BISF Types A, B & C are typically in the 1940 - 1959 construction range and will be mortgageable upto 85% in current condition, or if subject to an approved repair regime.

Again, this is a guide and will be subject to valuation.

If later, it may be another steel-framed construction with a similar rating by the lenders.

Leon_W

British Iron and Steel Fabrication (BISF) houses are "normally" OK for mortgage purposes with mainstream lenders. They will always look carefully at the surveyors report however. Do check with lenders directly if doing this yourself or engage a broker who will know the likely lenders immediately.

It sounds to me that the house is currently owned by the council so has probably been brought up to an acceptable standard with DG windows and the necessary modifications so it should be fine. However, many of these that were bought from the council in the Thatcher years have not been maintained and would prove difficult to mortgage.

The roof can be an issue. Tin tops are generally mortgageable but some were fitted with asbestos roofs which are more problematic, nothing wrong with them per se but are going to be a nightmare if needing repair.

Buildings insurance for non standard construction is going to be more difficult to find and more expensive. Factor this in.

ed110220

Try https://www.bisfhouse.com for more information about BISF houses. You should be able to recognise it as BISF if it is by the layout and window/door positions, eg the large square living room window is distinctive

Mine had very little trouble in buying in 2011 in almost original condition except the asbestos roof meant only Halifax would accept it. I think almost/all council owned would have new roofs by now so that shouldn't be a problem but check.