Modular Housing Finance

Frequently Asked Questions

• What is Modular Housing?

  Modular Construction Mortgages and Loans are a type of funding that allows you to build a property much much quicker than traditional housing techniques.

  It also allows you to bespoke design your home because the structure is being built off site and can accommodate most borrower requirements.

  The actual build itself is also a lot cheaper than a traditional brick or stone built property and in most cases, can be on site and in place in just 3 days.

  Also, a Modular Construction Loan is based on the asset, in this case, the structure, or ‘kit’ as it sometimes known.

  There are over 300 different bridging lenders in the UK (yes, 300!)…Some are major financial institutions like banks and some are specialist lenders you may have heard of like Aldermore or Shawbrook and not all of them will offer you finance for your modular housing project.

  In fact, there are no standout modular housing lenders in the UK at all so it is a question of searching the market.

  However, there are literally hundreds of smaller, alternative finance lenders who generally take more risks than the big banks and this allows them to lend against unusual or unmortgagable assets such as prefab or modular housing.

  It could be buying a house at auction. It may be buying another property before you have sold your existing one or it may even be because you want to buy a piece of land that doesn’t currently have planning permission.

  Whatever the reason, a modular housing bridging loan can be quick and relatively simple to apply for. As most lenders are looking at the value of the security (land or property) and not you, it enables them to lend money quickly and with little fuss.

• How much can I borrow with a modular housing bridging loan?

  You can borrow anything from £100,000 right up to £10m usually. Of course, some brokers will make out that you can borrow up to £50m but that usually only applies with development finance, not bridging and absolutely not with a modular housing mortgage or loan.

• Do banks offer modular construction bridging loans?

  If only! Everyone asks this question but the simple answer is no, they don’t. The usual excuse is that offering a bridging loan is riskier than offering a residential mortgage for example and we get that.

  However, if you choose the borrower carefully, the quality of the asset or security is good and you do your usual lender due diligence, then there is absolutely no reason at all why banks and other high street lenders shouldn’t offer bridging loans.

  However, some major house builders are now delivering modular housing projects on a regular basis.

• Are modular housing loans expensive?

  Compared to a traditional mortgage then yes, they are.

  But you have to remember…These are risky products for lenders. Yes, if it goes well then both the borrower and the lender can earn a LOT OF MONEY. However, if they get the deal wrong then both the lender and borrower could be in a lot of trouble.

• Do you charge broker fees?

  Nope. We are professional mortgage brokers. We know and understand bridging finance, modular construction finance, commercial mortgages and development finance inside out.

  So if you want to work with us, you are serious then all is good and we will not charge a broker fee.

  Simples.