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Can You Get a Mortgage on Prefab Houses?
Getting a mortgage on a prefab house can be more difficult than it is for a home built using traditional construction methods. Prefab houses are classed as non-standard construction properties, and not all mortgage providers are willing to take on this type of property.
However, it is not impossible to get a mortgage for a prefab home. Certain mortgage lenders may be more open to providing mortgages for this type of property than others, so it's worth researching the different providers and their criteria carefully before making any decisions.
At Teito, our experienced team of mortgage advisors has worked with many clients to secure mortgages on non-standard construction properties, including prefabs, so we can help you find a suitable mortgage lender and make sure your application is as successful as possible.
We take care of the paperwork and ensure that your application is managed efficiently, so you can focus on your new home! If you're looking for a mortgage on a prefab property, don't hesitate to get in touch with our team today. We're here to help and make sure you get the best deal possible.
What is a Prefabricated House?
A prefabricated house (or prefab house for short) is a property that has been built at a separate factory before being moved to its final location.
Prefab houses are often made from metal, timber or steel frames with wooden panels and cladding applied for insulation when in situ. They tend to be modular, so the design of each part is standardised. A lot of prefab houses are delivered and installed by large companies that build thousands at a time to sell across the world, with some smaller independent businesses also producing them.
Prefab housing has been around for many years. They were originally designed as a solution to the housing crises facing countries at that time and also as a way of creating affordable homes for people in rural areas where conventional buildings were too expensive. Today, they can be used as a way to meet growing housing demands or simply for people who want a stylish yet affordable home.
A prefab house is built in sections at a factory and then transported to the site where it will be installed and assembled on-site. This process can produce less waste than conventional building methods as factory-produced components can be utilised for more than one home, reducing the need to create additional resources.
What Are The Benefits Of A Prefabricated Home?
They are quicker to build
Prefabricated homes are perfect for giving you a self-build home quickly when your circumstances don't allow you to build or buy one 'normally.'
Prefab homes are often completed in a matter of days or weeks rather than the months or years you have to wait for a traditional house.
Prefab = affordable housing
Not only that, the process of building a modular home or buying a prefab home will often cost far less than if you went through conventional building methods.
You can customise a prefab home
Prefab homes can be built to any specification and you can choose from a wide range of styles. This is good news if you're looking for something unusual, as it means you'll get exactly what you want.
Less build disruption
There's less disruption in the build process, so your neighbours won't have to put up with a lot of noise or inconvenience. This is good news for people who want to build their own house without the upheaval that normally comes with it. There's also no need for scaffolding or cranes, which means there's no risk of damage if you live in a built-up area.
They're energy-efficient
Prefabricated homes are usually very energy efficient and have been designed to take advantage of natural ventilation and insulation to keep energy bills low. As prefab homes are often built quickly using modern materials, they can be very durable and strong.
What are the Disadvantages of Prefab Houses?
There are some downsides to buying or building a prefab house.
They can lack character
They tend to lack some of the character that comes with a traditionally built house, like decorative features on the outside and individual architectural details.
They can look out of place
A prefab home can look out of place in the local area, so you might have to compromise on design because future residents may not be comfortable with it.
Structural changes are difficult
Depending on your prefabricated home design, It's unlikely you'll be able to add an extension or any other structural change. This is different to standard construction brick-and-mortar homes, where it's possible to make changes and additions more easily.
It is more difficult to get a mortgage
It can be difficult to get a mortgage for a prefab house. This is because they are considered non-traditional construction, which some lenders may not provide finance for. We recommend finding a specialist broker who has experience in this area and can guide you through the process.
Insurance could cost you more
Bear in mind that insurance companies may require a higher premium for prefabricated homes as they are non-standard construction.
Do You Need Planning Permission For A Prefabricated Home?
There's no getting around it - the only way that you can legally build a prefabricated home in the UK is if you get planning permission.
Getting planning permission can be expensive and time-consuming. Planning permission may be more likely to be granted if you get an architect or surveyor to design your prefab home. This gives the local council a better idea of what's being built and helps make the case for why it should be allowed in that particular location.
Why Are Prefabricated Homes Cheaper?
Prefab homes are, in most cases, cheaper to buy than traditional homes because they're mass-produced.
They're also cheaper to build than a regular home because prefabricated homes are built in a shorter amount of time – as they're factory-built, there's no need for building materials to be transported from place to place.
The cost of building a prefabricated home depends on the exact design that you choose and the specification of the materials and finishes. Some designs will be easy and quick to build, while others will take longer. If you're looking at buying a home that has been professionally designed, this can add to the cost of the property.
In some cases they can be built more cheaply too due to how quickly they go up; modular buildings can be constructed in as little as ten days or so – while building a house from scratch can take months or even years.
What Is The Future Of Prefabs?
Prefabricated homes are becoming increasingly popular and many people feel that they're the future of homebuilding.
Different types of prefab homes are now available, with new designs being tried and tested all the time. Lower energy bills mean that many people see them as an effective way to improve your energy efficiency while also saving on costs. They're likely to become more popular in the years to come.
If you're interested in buying a prefabricated home in the UK, talk to one of our mortgage advisors. We understand that buying a prefabricated home can be an overwhelming experience, but with our expert advice, we can guide you through every step of the way.
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Do Prefabricated Homes Lose Value?
It's worth remembering that prefabricated homes are not built with the same materials as standard construction homes. Because of this, they're usually worth less than 'standard' homes. Many people think that this means they will lose value over time, however, modern prefabricated homes can appreciate in value over time assuming they are maintained as you would a standard home.
The exact value depends on what type of prefab home you choose and where it is.
Can You Get A Mortgage On A Prefabricated Home?
One of the biggest downsides to living in a prefab house is that it can be challenging to get a mortgage. Lenders are typically hesitant to provide finance for a prefab home due to the fact that they're not considered 'standard' construction.
This means that you may need to look at a specialist mortgage broker or lenders who have experience with this type of property or consider other forms of financing such as private loans.
Prefab mortgage lenders will want to check that your home has been professionally designed and built by a professional company or individual. If this isn't the case, you might struggle to get accepted for a mortgage on your prefabricated home.
If your prefab home is engineered to the very latest building regulations and standards, you're more likely to get accepted for a mortgage as long as you can show evidence of this and there are no structural problems. You may find that your choice of lenders is restricted in comparison to standard construction homes. For this reason, we would recommend engaging with a whole-of-market mortgage advisor who has experience in mortgaging prefabricated homes - such as our team at Teito!
At Teito, we've helped many people like you to find the right finance for their non-standard construction homes, including prefabricated homes. Our process is streamlined to give you time to focus on what matters, whether that's finding the right plot of land for your build project or designing your new home. Compare deals now and you could get a mortgage in principle in minutes!
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.