A Picnic Guide to Mortgages and Property Types

Your dream home might not fit neatly into the typical category mortgage lenders are used to dealing with every day, but whether you’re buying a modern eco-home, a quirky converted barn or a charming listed cottage, you can still get a mortgage to make it yours.

At Picnic, we’re here to help you understand how different property types affect your mortgage application. Because when you know what you’re working with, getting a mortgage becomes a lot easier.

How Does the Property Type Affect Things? 

The type of home you want to buy plays a big part in how mortgage lenders see your application. Some properties are seen as more ‘standard’ than others; think brick or stone walls, tiled roofs, and solid resale potential. These types of properties shouldn’t raise too many eyebrows on a mortgage application. 

Mortgage lenders assess risk when deciding whether to approve a home loan, and a large part of that risk includes being comfortable with the type of property you’re buying. Certain property types might be considered riskier for some lenders due to issues with structural integrity, maintenance costs, or legal red tape. 

However, specialist lenders exist who are more open to non-standard properties. They’ll evaluate applications case-by-case, looking at the overall condition of the property, your financial circumstances, and your awareness of the upkeep involved. 

Working with a broker who understands this landscape is a wise move and can help your chances of getting the mortgage you need. 

Different Types of Property Defined 

Here’s a quick rundown of the different types of properties you might be looking at buying:

• Standard houses: detached, semi-detached, terraced

• Flats and apartments (including high-rises)

• Bungalows

• New builds

• Converted spaces (like barns, churches or pubs)

• Prefab or modular homes

• Eco-homes

Each one has its pros, quirks, and mortgage implications. It’s all about finding what fits and knowing what to expect when applying.

When Is a Property Non-Standard? 

If it’s not built with bricks and tiles, lenders might label it “non-standard.” That doesn’t make it a bad choice; just one that might need a little more care and effort to finance.

Here are some common types:

• Timber-framed homes: Look great, especially in the countryside. But they need regular TLC to avoid rot, pests and fire.

• Steel-framed homes: Durable but prone to corrosion, especially in older BISF homes. Poor insulation can also be an issue.

• Concrete homes: Strong, but older models can hide structural issues, especially Cornish Units from the post-war era.

• Flat-roofed properties: Stylish, but drainage is everything. Poor design can mean leaks, which makes some lenders cautious.

• Thatched-roof cottages: Picturesque but costly to maintain. Often listed, which adds another layer of complexity.

• Eco-homes: Great for the planet, but may need specialist finance. Materials like straw or hempcrete aren’t every lender’s cup of tea.

• Modular/prefab homes: Built off-site and assembled quickly. Lender reactions can vary depending on quality and age.

• Unusual conversions: Windmills, churches, barns—these homes are full of character but might raise issues with planning permissions and valuations.

• Single-brick walls: Less insulation and more damp risk than double-skinned walls.

• Listed buildings: Protected by law. Beautiful, yes, but stricter regulations might deter some lenders.

Each type may influence how much you can borrow, what deposit is required, and which lenders are available. Getting a mortgage is certainly possible, but will need the right lender. 

Which Mortgage Lenders Can Help?

The good news is there are plenty of lenders available who specialise in the weird, the wonderful, and the one-of-a-kind. All you need is the right match, and to find those lenders with a better understanding of the various nuances involved with non-standard property types.  

That’s where we come in, because the right mortgage lenders for these types of properties aren’t usually available on the high street. 

What About an Uninhabitable Property? 

It's still possible to arrange a home loan on a property that's basically a shell and uninhabitable in its current form. But don’t expect a standard mortgage. If a property lacks basics like electricity, plumbing, or a roof that actually keeps out rain, you’ll need a renovation mortgage or possibly even a bridging loan to get started.

Fix it up, prove it’s liveable, and then you can switch to a standard mortgage. It’s a journey, but it's one we can help map out.

Can You Get a Mortgage on a Listed Property? 

Yes, it’s possible, but you’ll need to show you understand what you’re signing up for. Listed buildings are legally protected, which means you can’t just knock down walls or swap out windows without permission.

Specialist mortgage providers are more likely to approve home loans for listed buildings, especially if you can demonstrate knowledge of the property’s requirements and show that it’s in good condition. A full structural survey is also highly recommended.

How to Boost Your Chances!

If you're looking to buy a non-standard property, preparation is key. Here’s how you can add some additional power to your mortgage application:

• Get a full structural survey: This reassures lenders about the property’s condition and helps them assess potential risks.

• Save a larger deposit: Most non-standard properties require 20–25% upfront. A bigger deposit can widen your mortgage options.

• Maintain a good credit profile: Lenders favour applicants with clean credit histories and stable finances.

• Understand the property: Lenders love buyers who can demonstrate that they’ve done their homework and know their responsibilities when buying a unique home.