non standard construction remortgage

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bungaro

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hi
a friend of mine has a non standard construction (its a wooden house) which she inherited recently. she is looking to take out a mortgage on it but after meeting a bank manager in ptsb he seemed to have an issue with the fact that it was a wooden house. she has insurance on the house so should there be an issue for the bank really?? has anyone else had an issue getting a mortgage with a non standard constructed house??
thanks
 
not really a log cabin monbretia but its kind of like the houses you'd see in america with the timber cladding outside and its built on top of a timber frame too with some insulation in between
 
Banks never liked houses like that even years ago, usually any mortgage was only max 50% if at all due to the perceived difficulty selling should the need arise.

Just because she has insurance that doesn't mean the bank see it as a good risk, the bank are always looking at worst case scenario and the day they may have to repossess, would they get an easy sale? Might not with a non standard house like that.
 
thanks monbretia. she's only looking for 50% to buy her sister out (it was left to both of them) and the amount isn't huge (around 75k) and she is in a permanent teaching position so she is pretty secure financially. the site alone is worth a lot more than the amount she is looking to borrow so i'm hoping that she might get lucky. since you seem to know a lot in this area, would you have any advice on what she could do to help her case before meeting another bank??
 
I'm afraid it will all just depend on the bank policy, if they have a policy in place not to lend for such buildings then income/site value etc won't matter to them. A lot of bank policy is very inflexible as there are no decision makers at branch level and hard enough to find anyone in the Head Office either who will go outside guidelines.

A broker might not be a bad bet, at least they will know which bank might be more inclined to lend for this purpose.

If the mortgage doesn't work out and she has a credit union account it might be worth asking them, she could get secured loan rate, it would be higher than mortgage rate and probably max 10/15 yr term but might be a solution if no other is available.
 
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