Mortgages on reinforced concrete property

ruby2sday · 15 June 2019 at 12:44PM

Hi everyone, wondering if anyone has any advice or any experience in mortgaging non-standard constructions. I was in the process of buying a flat I really loved, but it got rejected by Halifax at the valuation stage for being reinforced concrete and having a small bit of single skin brickwork next to the front door. We had no idea about this. I'm gutted! The owner purchased it 5 years ago with a NatWest mortgage, but the lending criteria on their website says they don't lend on (pre) reinforced concrete. I'm not sure whether all reinforced concrete are pre-reinforced or that's a specific type. I've been looking for properties for the past year and everything I find seems to be some kind of unusual construction that lenders won't lend on! Probably due to me having a small budget and searching in London. It's getting so disheartening and I'm wondering how there seem to be so many of these constructions out there that lenders won't touch! How does anyone end up owning them?! Have the lending criteria gotten stricter? Can I only get a mortgage on something made of brick?!

[Deleted User] · 15 June 2019 at 1:03PM

PRC buildings are classed as defective so lenders generally dont lend on them unless they have had a repair process done and a certificate given afterwards.

Together homeloans lend on them being unrepaired but at 7% interest and 40% deposit you may want to just keep looking.

A lot of people will buy these properties as cash and do the repairs, it then makes them mortgageable and they can sell for a profit

AmyShepherd · 15 June 2019 at 2:29PM

We were originally going to buy a pre fab (concrete), but pulled out for other reasons.

HSBC would only loan 60% I think it was, but Barclays would loan 90%.

We’re buying a different property now, still with Barclays as it was easier to swap the offer to a different property.

Saying that, Barclays are an absolute ball ache to deal with!!

weallhaveflaws · 17 June 2019 at 8:50PM

I am in the process of buying a similar property and at first the broker kept asking for some certificate and eventually the sellers agent told them its not needed. TSB has agreed to lend on it with a ltv of 89%. I am based in Birmingham though so dont know if it makes a difference.

Are u using a broker?

anyways good luck

[Deleted User] · 24 June 2019 at 3:59PM

weallhaveflaws wrote: »

I am in the process of buying a similar property and at first the broker kept asking for some certificate and eventually the sellers agent told them its not needed. TSB has agreed to lend on it with a ltv of 89%. I am based in Birmingham though so dont know if it makes a difference.

Are u using a broker?

anyways good luck

Had yours gone through a repair process or was it still unrepaired? And was it Wates PRC as there are multiple types of prefab concrete?

weallhaveflaws · 24 June 2019 at 10:14PM

mine is a bryant low rise non standard construction. no certificate issued, but the wall has been done and made thicker. I don't remember the exact name of the process but tsb were happy with it.

Mortgages on reinforced concrete property

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