Mortgage for Timber Framed house

chezandpaul

Hi there,

My husband and I have decided to develop a parcel of land around our home which the planners have said will probably be fine, just need to submit plans. However, neither of us are property developers, built our own home or anything.

We have been researching into the various options open to us and one we are looking at is to build 2-3 timber framed homes. This is appealing to us as they erected a lot quicker than conventional block/brick, and as we would be bridge loaning the finance, would need to be selling them on within 12 months. It also means we will be living in a building site for less time and we don't need a contractor to build each one from scratch - just from wind/water tight.

Our problem however is how mortgagable timber frame homes are. When I phoned almost every lender today all they would say is as long as the valuation report said it was valued at the purchase price they would lend, they are not bothered what it is built from. However, I am looking for something a bit more substantial preferably in writing that this is the case as we would be investing considerably on this project. Nationwide do have this in writing on their website, but no other lenders.

Any advice, help or experience with timber frame house mortgages on modern builds ONLY would be greatly appreciated.

Thrugelmir

Are you seeking development finance?

chezandpaul

Yes we would be but it is more of an enquiry into the mortgages available for our potential would be buyers.

Thrugelmir

chezandpaul wrote: »

However, I am looking for something a bit more substantial preferably in writing that this is the case as we would be investing considerably on this project.

No lender is going to give such an undertaking as simply far too many variables. Not least that lending policy could change at any time.

chezandpaul

Have you had any experience of timber frame lending? I'm not too bothered about other variables or policy changes, I'm just after other people's experiences at the least with lenders for timber framed houses, thanks.

Nebulous2

Most of the property built in North-East Scotland is timber-framed and mortgages are readily available' as is home insurance. I'm not sure how widespread it is but I suspect much of the rest of Scotland is the same.

chezandpaul

Thank you, yes I have read that timber frame mortgages are the norm in Scotland, I'm based in Wales and unfortunately depending on who you speak to they are either not a problem or classed as non standard construction, which could potentially be a problem for some.

Ideally I am seeking those in England or Wales that have purchased a timber framed house with mortgage within the last 5 years or so.

pooch

A very quick google indicates a load of timber framed houses for sale around the UK, and hardly any appear to have any stated mortgage restrictions.

In fact, the only one with possible mortgage restrictions I could find was this one
http://www.rightmove.co.uk/property-for-sale/property-30574530.html
and that's probably not because it's timber framed, but that it's made out of concrete slabs

What I would say though is consider carefully about building timber framed properties if you have the choice. Some people are put off by them. Perhaps like you they think there might be possible mortgage issues? Or perhaps insurance costs more? Such concerns will adversely affect the selling price.
Surely you want the biggest bang for your buck in this investment venture?

jennifernil

chezandpaul wrote: »

Thank you, yes I have read that timber frame mortgages are the norm in Scotland, I'm based in Wales and unfortunately depending on who you speak to they are either not a problem or classed as non standard construction, which could potentially be a problem for some.

Ideally I am seeking those in England or Wales that have purchased a timber framed house with mortgage within the last 5 years or so.

We are in Scotland, but I think you are worrying unnecessarily.

Why would the same lender have a different attitude to a similarly constructed house just because it is in Wales rather than Scotland?

Surely what matters is that the house is built according to the regulations, has a NHBRC warranty or architects certificate, and the valuation is satisfactory?

Our house is TF, we have mortgaged with Halifax, Abbey and Nationwide in the past. Ours was individually built to our plans.

Daughter also has a (new) TF house, but built by an established builder, her mortgage is with HSBC.

None of the lenders were the least bit interested in the actual construction method.

Both are insured at normal premiums.

chezandpaul

Thank you that is very helpful

Jonesy88

We bought a timber framed property 5 years ago. The mortgage providers said that it wasn't traditional construction but still a conventional construction so never batted an eyelid.