Refinancing a unique eco self-build house

What was the situation?

I was approached by two clients of mine, a married couple, who had recently built a stunning eco self-build property together on the Cornish coast. This unique property’s external is 100% timber cladding with timber infill, making it very desirable as an eco-house. They were looking to raise £850,000 to refinance.

Both self-employed architects, the clients are equal shareholders within a limited company.

What was the issue?

At the time we spoke, the client was struggling to obtain a refinance loan because the property was still classed as a self-build. Self-build mortgage enquiries are often more complex to arrange than a traditional mortgage due to the lack of traditional mortgage security until the property is complete, with only a limited number of lenders offering these.

On this basis, the lender originally declined the application following the valuation due to the construction type of the property.

What was the process?

In order to understand the lenders decline, I needed to speak to them to find out more detail. They advised that the decline was based on the surveyor’s comments. Knowing this, I pushed back on the lender and requested the comments be sent to me for review to find out what was causing the issue.

At LDN Finance we have a strong network of lenders and relationships with key contacts that can assist in times like these. We are lucky to have strong contacts at our key lenders. I contacted our lender contact who assisted us with pushing back on the underwriters decision and obtained the comments from the surveyor.

The comments from the surveyor noted that they could consider the property if suitable certifications covering the frame and cladding was in place. Armed with this information, I asked whether the case would be reconsidered by the lender if we could obtain the required certificates.

The lender agreed, and the client provided the certificates. The case was re-instated and went to offer.

What was the solution?

At the time we were working on this enquiry, the original agreed rate was before the mini budget change, lower than what the final agreed rate was. Thankfully, this meant the clients could retain this rate which was at a time when rates were twice what they were previously.

Once complete, the clients thanked us for our help. They were extremely grateful, and pleased they persisted with the lender we suggested.

Lending solutions with LDN Finance

Are you needing to remortgage but would like some advice about the most suitable options available? We’re here to help you find a solution – no matter how complex your circumstances. At LDN Finance, our expert brokers have extensive experience in providing creative solutions to secure large loans for our clients.

We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates. 

Get in touch with us to organise an initial consultation.