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Mortgage/Insurance on Timber-frame, timber-clad building.


catrionag
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Happy Monday evening all!

 

Does anyone have any experience of getting a mortgage post-build with a timber-frame, 100% timber-clad building? 

 

We've now had an offer accepted on a plot (hooray!) and submitted planning today (hooray!) and trying to get our head around financing. 

 

It looks like Ecology will be a good option for us for the mortgage during the build, but seeing as we're only likely to reach an SAP rating of B (according to our Architect), their post-build mortgages aren't looking particularly attractive compared to the rest of the market. We had also been looking at BuildStore/BuildLoan, but today I received an email from them to say that their lenders have all decided that they will only accept a maximum of 50% timber cladding. I'd really like to avoid having to change the appearance of the house at this point as I'm pretty attached to the idea of the larch cladding, but if nobody will actually give us a decent mortgage after we're finished the build, rendering half of it might be the only option.

 

Another concern is finding an insurer who will insure our house once we've finished, given that it's non-standard construction (SIPs) plus the timber cladding. 

 

All in all, a bit concerning - does anyone have any similar experiences? Who are your lenders/insurers?

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1 hour ago, ProDave said:

A former member who built an entirely timber clad timber framed house used these people for his insurance https://gsi-insurance.com/get-a-quote/household-insurance/#gf_10

 

I will be trying this in a few weeks as we are so near to completion I want to move away from the site insurance.

 

Cheers Dave, that's really helpful! They look like exactly what we would need.

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We are 50% timber clad on a SIPs kit. Ecology loan for the build. I asked a broker for advice re: remortgaging as I've read others say they built a blockwork skin to clad onto do they could access the wider market post-build. He asked their lenders who stated that as long as it has a structural warranty they'll lend. 

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6 hours ago, catrionag said:

Happy Monday evening all!

 

Does anyone have any experience of getting a mortgage post-build with a timber-frame, 100% timber-clad building? 

 

We've now had an offer accepted on a plot (hooray!) and submitted planning today (hooray!) and trying to get our head around financing. 

 

It looks like Ecology will be a good option for us for the mortgage during the build, but seeing as we're only likely to reach an SAP rating of B (according to our Architect), their post-build mortgages aren't looking particularly attractive compared to the rest of the market. We had also been looking at BuildStore/BuildLoan, but today I received an email from them to say that their lenders have all decided that they will only accept a maximum of 50% timber cladding. I'd really like to avoid having to change the appearance of the house at this point as I'm pretty attached to the idea of the larch cladding, but if nobody will actually give us a decent mortgage after we're finished the build, rendering half of it might be the only option.

 

Another concern is finding an insurer who will insure our house once we've finished, given that it's non-standard construction (SIPs) plus the timber cladding. 

 

All in all, a bit concerning - does anyone have any similar experiences? Who are your lenders/insurers?

 

Hiya catrionag.

 

As a word of encouragement.. there are a good few houses in Scotland (mainly in the west side of Scotland) that were built in the 40's - 50's that are fully timber clad, these are often referred to as "non traditional housing". These houses are insurable. You can find these for sale on the internet. The point here is that what you are doing re timber cladding is not new but an improvement on these houses, design wise. More robust fire protection and so on.

 

Scottish BC are more familiar with the timber frame concept, timber cladding etc as we have a longer track record than say BC / English based insurance providers. 

 

Have you had a chat with a some local insurance brokers, the independant ones? You are on the East coast , try some at Barrhead, Glasgow, Paisley, Dumbarton way who know more about timber clad properties. They do, as more of these timber clad houses were built in the west rather than the east.

 

In terms of insuring your house in the long term this should not be a barrier. For example the Athletes' Village (Glasgow 2014) development has SIPS panels all signed off by Glasgow City Council. Have a look at some of these for sale on Zoopla.

 

Also remember that the Scottish fire regulations are a different in places from the English regulations. You may get a pleasant surprise if you go to a Scottish based independant broker for the build process, they will no doubt want to quote you for the normal house buildings insurance post completion.

 

In the spirit of BH I don't want give you names..but a lot of the brokers from Motherwell west will give you a few contact pointers even if they can't help you.

 

Oh, and they may also be brokering for a few builders so when it comes round to getting quotes for work it can come in handy re references etc.

 

If you explore this and stay " local brocker " you also can build youself a bit of a support network, yes it may cost few quid more / often less + /- £100.00 but it can pay dividends having someone at the end of the phone rather than dealing with an national network.

 

 

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I have tries GIS and they made a song and dance over not having a completion certificate so i tried renewing with Orwell insurance who we got unoccupied insurance with as the we had finished the structural work and they said not having a comp cert was not a problem with them and also we are timber frame/render board with S/S roof and a flat roof and the quote was just over £500 so cannot recommend them enough

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8 minutes ago, catrionag said:

Many thanks for this comprehensive reply @Gus Potter, definitely eases the mind a bit. Funnily enough, I hadn't even considered a broker so I'll ring around a few places as you suggest! 

 

Buildstore are the biggest self build mortage brokers in Scotland so they do know their onions - there's a load of misunderstanding on cladding and the fire regulations at the moment, especially in terms of the scottish building regs, even more so in the fall out from grenfell.

The issue you have is that most of the self build mortgages are provided by english companies who limit their exposure in scotland - but definitely speaking to as many brokers as you can

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18 hours ago, Mr Punter said:

Why not change the timber cladding to fibre cement board?  Easier to mortgage, insure and sell.

 

It does look like that might be the best option at the moment, and if we have to do that then we'll just suck it up and clad the eaves walls. I'd mainly like to exhaust our other options before doing that!

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  • 2 months later...
On 19/04/2021 at 20:04, catrionag said:

 

Cheers Dave, that's really helpful! They look like exactly what we would need.

 

On 19/04/2021 at 19:00, ProDave said:

A former member who built an entirely timber clad timber framed house used these people for his insurance https://gsi-insurance.com/get-a-quote/household-insurance/#gf_10

 

I will be trying this in a few weeks as we are so near to completion I want to move away from the site insurance.

Hey Dave, this is really useful info.

 

Don't suppose you know when you can move away from site insurance? We are with Self Build Zone and are also so near completion. We don't have our Completion Certificate though. Our site insurance is really expensive and is due to expire very soon. Do you know if companies will insure without official sign-off? Our electrician has said that he can get us safety certificate in the mean time until he is done with the final fix (hopefully in a few weeks...!) Thanks for your help. Joanna & Ben

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  • 4 months later...

Hi Catrionag,

 

I have come across same issue my house through buildstore, where i cladded with Fibre cement board but valuer by mistake wrote as timber clad. Just came across your post, what have you done in the end? do think fibre cement boards is any issue with bank? i am waiting for response from bank.

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  • 1 month later...
On 29/11/2021 at 22:19, madhum said:

Hi Catrionag,

 

I have come across same issue my house through buildstore, where i cladded with Fibre cement board but valuer by mistake wrote as timber clad. Just came across your post, what have you done in the end? do think fibre cement boards is any issue with bank? i am waiting for response from bank.

 Hi madhum,

Apologies for not picking this question up until now. In the end, we have decided to clad the eaves walls with cementitious board and render to avoid any problems remortgaging and selling in the future. The gable (street and rear garden facing) walls will still be timber clad, which satisfies the >50% rule that most lenders seem to have now.

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