Norton Home Loans has approved a £218,000 remortgage on a non-standard construction property in Southampton after three mainstream lenders declined the application. The case highlights ongoing challenges in securing finance for properties built with alternative construction methods.
The borrowers, a company director and a teaching assistant, were seeking to consolidate existing debts and fund a £30,000 home extension. Their existing borrowing included a mortgage on a standard variable rate, a secured loan charging over 10% interest, and unsecured debt.
Property construction complications
The property is a Precast Reinforced Concrete (PRC) construction, a post-war building type classified as non-standard. While the subject property had undergone structural repairs, neighbouring homes had not been repaired, leading multiple lenders to reject the application. The borrowers had also missed recent credit card payments.
David Binney, head of sales at Norton Home Loans, said: “Despite the challenges presented by the non-standard construction and recent credit blips, the overall affordability and positive valuation gave us the confidence to proceed and deliver a solution that met the customers’ needs.”
The lender offered up to 80% loan-to-value, subject to a conventional valuation confirming the property was mortgageable. The loan was approved on a two-year fixed rate product.
Non-standard construction lending
PRC houses were built widely in the post-war period to address housing shortages. Many have since been repaired under recognised schemes, but lenders vary in their assessment criteria, particularly when neighbouring properties remain unrepaired.
Mainstream lenders typically focus on standard brick-and-mortar properties. Non-standard construction includes PRC homes, timber frames, prefabricated builds, and properties with flat roofs. These properties often require specialist lenders who assess cases individually rather than through automated systems.
The case was introduced by broker Jessica Cook at John Charcol after three other lenders declined. “Getting this case approved with Norton Home Loans was a huge relief for the clients and myself, having been declined with three previous lenders,” she said.
The approval comes amid broader challenges in the mortgage market, where regulatory scrutiny has increased across various aspects of property transactions. Similar to recent enforcement activity in HMO licensing, lenders face pressure to balance risk management with borrower access. Meanwhile, changing tax policies have impacted affordability for many borrowers seeking to enter or move within the property market.
Conclusion
The case demonstrates the continued role of specialist lenders in serving borrowers with non-standard properties or complex financial profiles. Norton Home Loans, which has operated for over 50 years, uses direct underwriter assessment rather than automated criteria to evaluate applications.
