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Mortgage Glossary
Non Standard Mortgages
 
Non standard mortgages differentiate themselves from the other types of mortgages through the fact that the property involved in the loan is anything else but a conventional building. For example, it may be a glass building, or a building made of a combination of glass and steel, and in general a property where the material used isn’t the conventional brick, hence the naming of “non standard mortgages”.

As you may have already thought, these types of loans are not that easy to obtain, and also the amount you are eligible to receive will never be equal to the real market value of the property. This is mainly because the physical condition of a building which is not conventional is uncertain; in a few years it may decay so the lender takes a huge risk by approving for a high loan to value. In case of repossession, it may happen that the lender won’t be able to sell it not even for the half of its value, and then the whole scheme becomes detrimental to him.

A proper evaluation of the building itself is a very essential step, because it is important to you as well to enter a fair deal. More over you have to evaluate all your options and see whether a pre fabricated home or a building which has wood as prime material is indeed something it is worth to take a risk for. If there was to make a list with the non standard constructions, this would include: flats (especially high rise ones), mixed buildings like the case of an apartment which is situated above a shop, farms, and flying freeholds.
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Usually when you check for lenders that offer non standard mortgages on different websites, there you should be provided with comprehensive lists which contain the types of buildings or properties that are acceptable, and those that are not. Mainly because it is a huge risk to the lender to offer a loan for a non standard building, they will set up stricter criteria for the loan. For this, even before you turn to this option, you have to ensure yourself that you have the appropriate income in order to afford those required regular payments. Moreover, expect that you will be required to show up at least a good credit rating, and in general that you do not have too many debts like more accumulated credit card debts for example.

While there is a risk for the lender, you should also think over seriously the reasons for which you purchase such a non standard building. For example if it is a defective property, and you have to further make heavy investments in order to bring it in a good shape, then make calculations and see how much will you have to invest in it, it may not even be as appealing after all. Don’t forget that you will make heavy repayments until the building is finally yours, and for the renovation you need to use up your saving perhaps. Then, if you wish to purchase a wooden house for example, think about the advantages but also the disadvantages such as you would definitely need to insure it against natural disasters.

Buying a property with a structure that is likely to suffer severely with the passing of years is perhaps not worth your effort of taking a mortgage. In any case if you feel unsure, always seek professional advice, perhaps the opinion of a structural engineer is also indicated in such cases. You have to make sure that your effort is not in vain; because it doesn’t mean that if you buy cheaper property and the mortgage rate is lower you will also be satisfied on the long run. These decisions need time and patience before being taken, and especially a great deal of research on your part and don’t forget about a very well established plan: what purpose will the building serve, how much do you need to invest in it, is it enough reliable for the purpose you have in mind, and other such factors. The real estate market is abounding in offers, so never make your decision on the spur of the moment.

Mortgages for overseas properties can also be considered 'Non-standard' as rules vary greatly from country to country. For example when looking at Spanish mortgages one must be aware of the classification of a property in order to get an accurate mortgage quotation.