Monday 7th January 2008
Eco-homes may not be the best properties to obtain mortgages on because of their unconventional nature, it has been claimed.
According to independent financial advisers Lansdown Place, mortgage lenders can often be reluctant to offer mortgages on unconventional properties because of the unknowns involved when coming to resell them.
Simon Harris, spokesperson for Lansdown Place, explained: "The main issue with unusual homes is durability, and this potentially applies to homes built with eco-friendly materials."
He continued: "Mortgages are granted on the basis that the property has a very long life ahead; lenders usually expect the vendor to put a larger deposit down where the life span is in question – or where maintenance is higher than a typical brick built house."
Under the government's 'Building a Greener Future' scheme, all new homes will be carbon-neutral by 2016, but it may be the case that many potential buyers find it difficult to get a good mortgage product because of the unconventional nature of the buildings.
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Mortgages
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