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Underpinning is a way of securing the foundations of a property that has suffered from subsidence, which means that the property's foundations have moved since being constructed. But is it possible to get a mortgage on a property that has had underpinning work carried out on it in recent years? Read on to find out…
Can you get a mortgage on a property with underpinning?
Yes. As long as the property has been underpinned to a high standard and the subsidence issue has been resolved, there is no reason why you won't be able to get a mortgage on an underpinned property, even if the work was carried out in recent years.
A relatively small number of lenders, however, will decline you outright if the underpinning was completed in the last 10 years, and others apply specific criteria to underpinned homes.
With existing subsidence issues, you won't be able to get a mortgage or insure the property.
For underpinned properties, we recommend you use an experienced mortgage adviser. They will recommend the best lenders to approach to boost your chances of mortgage approval and securing the best deal for your needs and circumstances.
Lending criteria for underpinned properties
The lending criteria for a property with underpinning is largely the same as it is for standard properties. You will need to go through the usual credit and affordability checks, but some lenders have specific criteria for these properties too, including the following:
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Valuation reports: Extra scrutiny is usually placed on these with underpinned properties as lenders will be keen to see the valuer confirming that the subsidence has been resolved and is unlikely to cause issues in the future.
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Quality of the underpinning: Some lenders will need to see that the works were carried out by a reputable firm/contractor and are insurance-backed.
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No evidence of ongoing movement: There are lenders who need confirmation that the movement of the property has completely stopped post-underpinning.
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Buildings insurance: A few lenders will only offer a mortgage if the property qualifies for buildings insurance on standard terms.
Will you need to provide any additional documents?
This isn’t always unnecessary, depending on the severity of the issue and how long ago the underpinning was completed, but some lenders may ask for the following:
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A copy of the original structural engineer’s report
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A letter from a structural engineer or building insurance provider confirming that the property is no longer subject to monitoring
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Any additional reports/estimates guarantees paper work relating to underpinning
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Written confirmation from the building insurance provider that they are aware that the property has previously been underpinned and are happy to insure the property under normal terms and conditions
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Should you buy a house that's been underpinned?
No house is perfect, especially with older properties; there are bound to be issues of one kind or another. In the past, subsidence was viewed as a more serious problem than it is today. Thanks to modern solutions such as underpinning, it's possible for houses that have suffered from subsidence to be bought and sold without too much concern.
As a buyer, you should consider that when you come to sell in the future, the thought of an underpinned house will put some buyers off. Although it may not bother you, this could reduce the number of potential buyers in the future.
In many cases, houses that have been underpinned are actually more structurally stable than houses without any subsistence issues. That said, you should get a structural survey of the property if you suspect current or historic subsidence issues or know that it has been underpinned. Sellers legally have to declare if the property has been underpinned.
Does it affect the property’s value?
Yes, some estimates put underpinning at reducing the value of a property by 20-25%, although this will depend on how severe the issue was and how long ago it happened. The quality of the remedial work will also play into the value of the property.
Which mortgage lenders are available?
If the property you’re buying was underpinned in the last 10 years, lenders including Bath Building Society and Suffolk Building Society are ones to avoid as they will not approve a mortgage under these circumstances. Plenty of mortgage providers will, however, and you will find examples of them and their policy for these properties below:
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Santander: Will consider offering a mortgage subject to a survey report confirming the work was completed to a high standard and that there are no ongoing issues.
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Nationwide: May lend if the underpinning was completed as part of an insurance claim with appropriate supervision and guarantees.
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Clydesdale Bank: May offer a mortgage subject to suitable warranties/insurance- backed guarantees being provided, and will insist that buildings Insurance is available on standard terms with no onerous excesses.
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Kensington: States that properties that have been underpinned within the preceding 12 years should have a 12 year guarantee from a reputable company warranting the works undertaken. Will decline if there is evidence of ongoing movement.
For a complete rundown of available mortgage lenders, speak to one of our brokers
How to get a mortgage on a underpinned house
At Teito, we've helped many people like you to get a mortgage on an underpinned property. Taking away the unnecessary and time-consuming steps, we've evolved and streamlined the application process. The end result is a simple, stress-free online process that leaves you to focus on more enjoyable things! As a whole of market service, we have access to thousands of mortgage deals, including those from providers who lend on underpinned properties.
If you're ready to begin your journey, compare deals now and you could have a decision in principle in minutes - get started here.
FAQs
It isn't always clear that a property needs underpinning, and it may be subtle signs such as cracks around windows or doorframes that alert you to a potential problem. The property could lean to one side in the most severe cases, indicating a building survey is urgent.
If you're concerned about the structural integrity of your property, you should seek out professional guidance from a Chartered Surveyor and a Structural Engineer. They will perform an inspection of your home and produce a report that details any potential issues, including whether the property needs to be underpinned.
When a property is underpinned, the existing soil is removed and replaced with new, stronger materials to improve the structural integrity of the building. If not performed, the property could be deemed unsafe and even be at risk of collapse.
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.