Pre-fabricated homes are to become more mortgageable after the launch of a scheme backed by the UK’s largest lenders.
Santander, Lloyds, TSB, Nationwide and RBS have all made a commitment to the BOPAS scheme – the Buildoffsite Property Assurance Scheme.
Although the pre-fabs of the last century were often considered uninsurable and hence unmortgageable – to the extent that some lenders would not even consider timber frame construction – residential properties largely constructed off-site now regularly feature in programmes such as Grand Designs.
They are often portrayed as being more environmentally-friendly than their mainstream counterparts.
BOPAS, a spin-off of the Buildoffsite trade body, will now aim to make both valuations and mortgages on such homes easier.
Simon Main, managing director of insurance business BLP, said: “Buildoffsite has done incredibly well to promote offsite and non-traditional construction, and BOPAS is a logical progression for them.
“Non-traditional construction will become more and more popular, especially in light of the increased regulation relating to carbon emissions and energy performance.”
David House, head of property risk at Santander, said: “As the building industry strives to meet the challenge of producing carbon neutral homes, it will increasingly look towards the use of new methods of construction and modern materials.
“Santander UK anticipates that in coming years our customers will want to purchase properties built from materials and to designs unlike any previously seen in the mainstream housing market.
“As a responsible mortgage lender we seek to respond to the aspirations of our customers whilst mitigating the risks associated with accepting new types of construction for mortgage security.
“The Buildoffsite Property Assurance Scheme enables us to do this because it provides a framework which ensures a consistent and rigorous approach to managing the risks associated with non-traditional construction.”
Lloyd’s Register will manage the scheme and hold a database of accredited manufacturers, developers and contractors that have satisfactorily completed the scheme evaluation process.
BLP, which has over 20 years of underwriting non-traditional construction systems, has provided the template for durability and maintenance and scheme-specific design and workmanship checks.
The last stage of the process will be a database that will provide information on the construction of all homes that have been through the scheme so that surveyors can be confident that lenders who are party to the scheme have already approved the construction as suitable for lending purposes.
Ultimately, BOPAS will enable surveyors to provide a mortgage valuation on a property built with an innovative form of construction, while confident that it has been built to an agreed standard that lenders have already accepted as mortgageable – subject to the usual conditions.
Pictured is a building in Letchworth, Hertfordshire: photo courtesy of Cole Thompson Anders Architects
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