In this brief guide, we are going to discuss buying a Woolaway bungalow.
What to consider when buying a Woolaway bungalow
Woolaway bungalows fall into the non-standard construction list and hence getting a mortgage for a
Woolaway bungalow may be tricky as the list of mortgage lenders you may be able to approach could be limited.
You certainly will not be able to get a Woolaway mortgage from most high street mortgage lenders.
Most people are worried that they won’t be able to get a mortgage on a Woolaway bungalow as it is built with concrete panels rather than a traditional brick
Getting a mortgage on a Woolaway bungalow could be very difficult due to the type of construction and hence specialist mortgage advice may be needed.
There are not many mortgage lenders who offer Woolaway bungalow mortgages and hence specialist mortgage advice is really needed.
You may indeed be able to get a mortgage for a Woolaway bungalow at the same rate as others with a residential mortgage on a brick property.
You can get a mortgage for a Woolwaway bungalow with or without a PRC certificate but you may be more limited to a handful of mortgage lenders without a PRC certification.
A Woolaway construction can either be a bungalow or a house.
The issue with Woolaway bungalows
Typically Woolaway bungalows have very poor insulation and hence they tend to lose a lot of heat. In more recent years the installation of external walls has reduced the heat loss and increased the insulation.
This means your heating costs are dramatically reduced.
If you do not have external walls then you could get some grants which will allow you to carry out this work.
You will be more likely to get the grant if your household is powered with oil or coal.
Getting Equity Release on a Woolway bungalow
Getting equity release on a Woolaway bungalow or house will be very hard, if not impossible as the equity release providers are not yet keen on lending on this type of construction.
Buying a Woolaway bungalow with bad credit
Buying a Woolaway bungalow with bad credit will make getting a mortgage even harder as you will already be limited to the number of mortgage lenders who may be willing to lend to you as Woolaway bungalows are considered non-standard construction.
However, with that being said there may be a handful of bad credit mortgage lenders who will offer mortgages to borrowers to buy a Woolaway bungalow with bad credit depending on what type of bad credit it is and how old it is.
Bad credit could include:
A debt management plan
A home repossession
A mortgage default
Buying a Woolaway bungalow with a government scheme
Some of the government schemes below may not be able to help you as they may insist that you only use them on a traditional brick house.
You should use a government scheme eligibility checker to see if you are eligible or contact the different scheme providers to see if buying a Woolaway bungalow will be an issue.
The government schemes include:
- Lifetime ISA– gives you a government bonus of £1,000 if you save the maximum £4,000 a year.
- Help to buy ISA– gives a maximum bonus us £3,000 if you save the maximum allowed of £12,000. Before you get either you should consider which is better. Lifetime ISA vs Help to buy ISA.
- Help to buy equity loan- gives you up to 40% as a 5-year interest-free equity loan. You begin to pay interest at 1.75 % after the fifth year and 1% plus RPI for every year thereafter.
- Shared ownership– You can buy between 25% to 75% of the property initially with a shared ownership mortgage and then buy more using a staircasing mortgage.
- Armed forces help to buy– similar to the help to buy equity loan but specific for the armed forces personnel giving them an increased chance of acceptance.
- Rent to buy– This is the right to buy scheme on which this guide is currently discussing. A different marketing name is just used. Watch out for this when shopping to avoid missing out on eligible properties due to confusion.
- Right to buy– allows you to buy your home at a discount price.
- Preserved right to buy– same as above.
- Right to acquire- same as above.
Use a mortgage broker when buying a Woolaway bungalow
You may want to consider using an independent mortgage broker to get a mortgage.
Mortgage brokers are important as they can access mortgage products from across the whole of the market in some cases. This could be over 11,000 mortgage products. This may have some advantages than going directly to a mortgage lender.
A mortgage broker will look to understand your financial circumstances and then provide recommendations on which mortgage products may be suitable for you.
After giving you these mortgage recommendations, most mortgage brokers will seek your consent to apply for a mortgage in principle.
This will allow you to shop for your home easier as more estate agents and sellers may take you seriously or it will give you confidence that your remortgage is indeed a possibility before you make a full mortgage application.
Once you have found a home you want to buy or are satisfied with the mortgage offer for your remortgage then the mortgage broker will then look to get you a mortgage offer.
This will come with a key facts illustration document which details out the features of your mortgage including how much you will pay per month if there are any limits such as early repayment fees, or annual overpayment limits.
If you are happy with everything you can then go on to secure your mortgage with the help of a conveyancer. Your conveyancer will manage the legal searches on the property to ensure there aren’t any issues with it, they will oversee the sales agreement to ensure it is in your best interest, they will manage the transfer of mortgage funds, exchange contracts with the seller or their conveyancer and set a completion date with the seller or their conveyancer.
In this brief guide, we discussed buying a Woolaway bungalow.
If you have any comments or questions please let us know.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.