"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"
- David Binney - Norton Home Loans
Norton Home Loans has helped two joint applicants raise £218,000 through a remortgage on a non-standard construction property in Southampton, consolidating existing debts and funding a home extension after three other lenders declined the case.
The borrowers, a company director and a teaching assistant, were carrying several layers of debt: a mortgage sitting on a standard variable rate, a secured loan charging more than 10% interest, and unsecured borrowing. The remortgage cleared all of it, with an additional £30,000 ringfenced for renovations and an extension on the property.
Why other lenders said no
The central complication was the property itself. The house is a Precast Reinforced Concrete (PRC) construction, a type classed as non-standard because of the materials and methods used to build it.
PRC properties can be difficult to mortgage at the best of times, but this case carried an extra hurdle: while the subject property had undergone structural repairs, neighbouring homes had not, which led multiple lenders to decline the application outright.
The applicants had also missed some credit card payments recently, adding another layer of complexity to an already difficult file.
Norton assessed the case individually rather than rejecting it on criteria alone. "This case highlights our ability to support borrowers with complex requirements, particularly where property type and credit history may limit options elsewhere," said David Binney, head of sales at Norton Home Loans.
"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 (LTV), conditional on the property being deemed mortgageable through a conventional valuation. Once the survey came back satisfactorily, the loan was approved on NHL's Optimal 1 product at a two-year fixed rate.
What is a non-standard construction mortgage, and when do borrowers need one?
Most high street lenders are set up to process standard brick-and-mortar properties quickly and efficiently. Anything that falls outside that definition, including PRC homes, timber frames, prefabricated builds, or properties with flat roofs, tends to fall into the non-standard category.
PRC houses were widely built in the post-war period as a fast solution to the housing shortage. Decades later, many have been repaired under recognised schemes to bring them up to a mortgageable standard. However, lenders vary in how they assess them, particularly where neighbouring properties remain unrepaired, as unrepaired homes nearby can affect valuations and perceived risk.
Specialist lenders like Norton Home Loans, which has operated in this space for more than 50 years, take a more flexible approach. Rather than relying on automated systems, they assess cases individually, considering affordability, valuation outcomes, and the borrower's wider circumstances. That direct access to underwriters is often what makes the difference on complex files.
The broker's role in getting the deal done
The case was introduced by broker Jessica Cook at John Charcol, who had already exhausted three other lenders before approaching Norton Home Loans.
"Getting this case approved with Norton Home Loans was a huge relief for the clients and myself, having been declined with three previous lenders, so even getting a DIP accepted felt like an achievement," she said.
"Matthew, NHL's BDM and the underwriters Sharney and Simon were so helpful throughout the case and were quick to update. Norton Home Loans were my only option, and I am so pleased they were able to lend on this property. The clients are now finishing their extension and renovations and are really pleased."
