Getting a mortgage for a wooden house
A mortgage is a loan which is secured against your home. When you take out a mortgage, you enter into an agreement to pay the loan back, with interest, over a period of time agreed with your lender. A mortgage is a serious financial commitment, because if for any reason you cannot repay the loan, the mortgage lender can repossess your house and sell it in order to recover the debt. It’s therefore essential to only borrow an amount that you can afford to repay.
The current financial climate can make finding a suitable mortgage a challenge even for buyers of conventional house, so those who want to buy a non-traditional home such as a wooden house may face even more obstacles. However, you can find specialist brokers who can help you source mortgages from lenders who are happy to provide mortgages for wooden houses. There are certain criteria that you will need to fulfill in order for your application to be successful.
If you apply for a mortgage for a wooden house, lenders will consider many of the usual mortgage lending criteria, such as:
- Do you earn enough to borrow the amount you want?
The stability of your income - Are you self-employed or new in a job?
Your outstanding debts - How much debt do you have?
Your credit rating - Have you ever missed a mortgage payment or other repayment in the past? Do you have any County Court Judgments (CCJs) against you? Have you even been bankrupt?
Mortgages for self-build wooden houses may attract additional specific criteria such as:
- Requiring a specific type of building construction and materials
- Requiring details about the financing of the project