ICF Mortgages – Mortgages for property built using modern methods of construction.
Modern methods of construction (MMC) are commonplace in the UK and are especially popular with SME house builders wishing to build energy efficient properties. MMC builds are encouraged from the very top of government and there are advantages right throughout the system including grants, cheaper funding and of course the long term benefits for home owners and the environment.
Fox Davidson are a UK mortgage brokerage that specialise in Insulating Concrete Formwork (ICF mortgages) and Modern Method of construction (MMC mortgages). We secure discounted and preferential mortgage terms for green homes. This article in particular looks at ICF mortgages as some of our clients have reported issues when trying to secure mortgages on ICF built property.
The CML.
It is important to note that ICF construction has been recognised by the council of mortgage lenders (CML) as an acceptable construction type.
The Council of Mortgage Lenders issued a letter to the ICFA confirming the following statement:
The Valuation Panel of the Council of Mortgage Lenders confirmed that ICF (Insulating Concrete Formwork) construction is acceptable for mortgage purposes as a standard form of construction, subject to provision of valid product certification and monitoring of ICF System providers by the ICFA (Insulating Concrete Formwork Association) of the UK. The lending decision is always at the discretion of the mortgage lender advancing the funds.
Which lenders will lend on modern methods of construction?
Each lender in the UK sets its own criteria including the construction types they will lend on. Fox Davidson work with lenders across the market including high street banks, buildings societies, broker exclusive lenders and private banks. We work with several mortgage lenders that will lend on property built using modern methods of construction including the ICF construction type.
To discuss mortgages on ICF constructed property please do get in touch with on of our experienced mortgage consultants.
