Reema Construction Mortgage: How to Finance a Non-Standard Home

Can I Get a Reema Construction Mortgage?

Obtaining a Reema construction mortgage can be challenging due to the property’s non-standard construction method. Lenders typically prefer traditional building types—such as brick, block, or stone walls—as these offer ease of maintenance, better thermal insulation, and higher resale value.

However, Reema-built properties, which belong to the category of concrete houses, have structural risks that make lenders hesitant. The hollow panel building method, used in Reema construction, has led to degradation over time, making it difficult for buyers to secure a non-standard construction mortgage.

Despite these challenges, Reema construction mortgages are available, especially for homes that have undergone licensed repair schemes and possess a certificate of completionThe point at which a property purchase is finalized and owne....

What Are Reema Construction Homes?

Reema construction refers to a concrete panel construction technique developed post-World War II by Reema Construction Ltd to address the UK’s housing shortage. The method involved precast concrete components for onsite assembly, enabling the construction process to be completed quickly.

Over 16,000 Reema homes were built in England, with an additional 1,600 in Wales.

There are two types of Reema-built properties:

1. Reema Hollow Panel Homes

• Built using double-skinned hollow panels, linked by concrete pillars and steel reinforcement bars.

• Identified as a defective housing type due to cracking, spalling, and poor insulation.

• Designated as “defective” under the Housing Act 1985, making it difficult to secure a Reema construction mortgagewithout repairs.

2. Reema Conclad and Reema Contrad Homes

• Built with steel beams and precast panels, making them more structurally sound.

• Not classified as defective and easier to finance through a non-standard construction mortgage.

For potential buyers, a PRC certificate is crucial for obtaining a Reema PRC Hollow Panel concrete construction mortgage.

Why is it Difficult to Get a Reema Construction Mortgage?

1. Structural Concerns and Building Materials

• Concrete frames and concrete beams in Reema-built properties often weaken over time.

• Subsequent surveys have found issues like thermal performance concerns, concrete degradation, and heat loss.

2. Lender Hesitation and High-Risk Borrowers

• Lenders view Reema construction mortgages as high-risk due to the construction type.

• Street mortgage lenders and reputable lenders often require perfect credit histories to approve financing for non-standard concrete homes.

• Affordability stress tests are more rigorous, increasing closing costs and mortgage deposits.

3. Poor Energy Efficiency and Maintenance Costs

• Reema-built properties suffer from poor insulation, leading to higher heating costs and cooling costs.

• The cost of homeownership is higher due to expensive maintenance and brick wrap repair requirements.

How to Get a Reema Construction Mortgage

1. Obtain a PRC Certificate

• If the home has undergone a licensed repair scheme, obtaining a PRC certificate is critical for mortgage approval.

• A Reema PRC Conclad concrete construction mortgage is easier to secure than one for Reema Hollow Panel houses.

2. Work with Experienced Brokers

• Mortgage teams specializing in non-standard property financing can help find competitive rates.

• Ex-council properties, such as Orlit Houses, Blackburn Orlit Houses, Woolaway Bungalows, Cornish Bungalows, HBL Bungalows, Lileshall Houses, and Lindsay Houses, require brokers with expertise in Right-to-Buy mortgages.

3. Get a Building Survey and Structural Report

• Hire a building survey expert to assess external walls, gable walls, and cavity walls.

• The survey should cover potential health risks, hidden threats, and degradation over time.

4. Explore Alternative Mortgage Options

• Variable rate mortgages or rate products may be available for Reema-built properties.

• Buyers can consider Council tenants programs for financing council houses.

Can I Get a Reema PRC Hollow Panel Concrete Construction Mortgage?

Yes, but approval depends on whether the Reema-built property has been:

1: Repaired under a licensed scheme

2: Issued a PRC certificate

3: Assessed for structural integrity

Lenders may still charge higher interest rates and require larger deposits, especially for properties on the defective housing list.

Reema Construction Mortgage Process

• Valuation Price & Appraisal – A lender will assess the valuation price based on the type of building and construction method.

• Credit Profile & Credit Score – Buyers with County Court Judgments (CCJs) or poor credit histories may face exit charges and higher repayment charges.

• Access to Companies & Lenders – Street lenders may not approve Reema construction mortgages, so working with specialist mortgage brokers is recommended.

Next Steps for Getting a Reema Construction Mortgage

If you’re considering a Reema-built property, take the following steps:

• Determine the type of property (Reema Hollow Panel vs. Reema Conclad)

• Obtain a PRC certificate (if applicable)

• Hire an experienced mortgage team to find suitable lenders

• Prepare for affordability stress tests and potential additional costs

• Explore renovation options to improve mortgage eligibility

FAQs – Reema Construction Mortgages

What is a non-standard construction mortgage?

A non-standard construction mortgage is a loan designed for concrete construction homes, including Reema-built properties, Boot Houses, AGM Modular homes, and Woolaway Houses.

Why is a Reema construction mortgage difficult to obtain?

Lenders hesitate to finance non-standard properties due to poor energy efficiency, structural issues, and high maintenance costs.