Can You Get a Mortgage on a Modular Home?

With the gap between income and housing prices growing ever wider, stepping onto the housing ladder can seem more out of reach than ever. A recent article on mirror.co.uk revealed that the average first time buyer will now take seven-and-a-half years to save for a house deposit, and that they don’t expect to get the keys to their home until around the age of 37. The current cost-of-living crisis has only exacerbated this.

But while the general outlook may seem bleak for both first-time buyers and homeowners looking to make a change, some exciting fresh routes to home ownership are beginning to emerge. One of the most popular choices is opting for a modular home over a more ‘traditional’ house. We understand that a potential barrier to entry may be the thought of trying to get a mortgage, which can be difficult at the best of times, for a modular home. Can you even get a mortgage on a modular home? Thankfully yes, you can. Let’s explore the process behind obtaining a modular home mortgage and some of the options open to those seeking this exciting way of life.

What Is A Modular Home?

Traditional bricks and mortar homes are built on-site using the skills of a range of craftspeople and their specific areas of expertise. Conversely, modular properties are pre-built off-site and assembled and finished on-site after being delivered. Modular homes come with significant cost benefits, and are classified as being prefabricated. This term once had a bad reputation linked to the poor long-term quality of properties built to combat the housing shortage after the Second World War. Today, prefabs are among some of the most exciting and enticing new ways of living. Just remember that planning permission rules will vary depending on location and local authority preferences – find out more here.

Mortgaging A Modular Home – First Steps

Getting a mortgage on a shipping container home is a slightly different process than obtaining a conventional mortgage. Because modular homes are built from different materials to a traditional home, your mortgage provider will want to know that your home has been built to the best standards, in order that it will appreciate in value, rather than fall. You also need to consider the resale value – homes with unusual, or eccentric, features may be harder to sell on.

Your mortgage is more likely to be accepted if you’ve used a professional architect, a reliable and renowned builder and a structural engineer to ensure you’ve met the essential and stringent building codes of the modern age. Showing that you are committed to the long-term upkeep of the home, along with the methods and regularity needed to do so, will go a long way too. Your choice of lender for a modular home may be narrower than the bricks and mortar sector, but with the correct due diligence there is absolutely no reason you can’t get funding for your dream home.

Benefits of Buying a Modular Home

The benefits of buying a modular home are many. For a start it can be significantly cheaper than buying a traditional home with careful planning and consideration. It’s also very quick, with homes being built and delivered in weeks, rather than months. Modern shipping container homes are eco-friendly – something we’re very proud of here at ModCon Cabins. Perhaps the most enticing aspect of opting for a modular home is that you are the master of your own fulfilled vision – the design, layout and even the size and number of rooms is entirely down to you.

Next Steps in Mortgaging Your Modular Residence

Hopefully this blog has eased some of your concerns around buying and mortgaging a modular home. Ultimately, the best place to start when considering a mortgage on a modular property is to get in touch with a qualified Mortgage Advisor with previous of experience of modular home loans. There’s a lot to consider when thinking about living in a container home, but we’re here to help you and your chosen builders with any questions you may have along the way.

Contact Us

From shipping container home dream to reality, our friendly team is on hand to answer any of your questions and concerns. You can call us on 0333 404 8822 or use our contact form to send us a message and we’ll get back to you.

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