esbs Talks Modern Methods of Construction

Innovative modern methods of construction (MMC) is the way forward for people considering building their own home, but many are put off by the perceived difficulty in securing a mortgage, or are not even aware they require a specific mortgage.

We are eager to dispel this myth and encourage future MMC homeowners to get in touch to find out how we can help.

What is MMC?

MMC refers to non-traditional ways of building new homes; usually by fabricating the structural units of a building off-site and composing them on-site. With technology and techniques rapidly improving, it’s not surprising that two thirds of house builders believe that MMC will play a key role in new home supply.

There are many advantages to MMC homes; most obviously the reduced time and labour it takes to construct them while retaining a high level of quality. But while MMC homes are shaking off the ‘prefab’ legacy, the perception that they are difficult to secure a mortgage for remains.

What is the mortgage criteria?

To borrow on any MMC home, the applicants’ chosen scheme must be accredited through the Buildoffsite Property Assurance Scheme (BOPAS). BOPAS assure lenders that the property will be sufficiently durable and readily saleable for a minimum of sixty years.

Other requirements include housing warranty insurance from either BLP Insurance or another esbs-approved provider, comprehensive building insurance in place from inception, and it must be a genuine new build, or is a self-build project. Full details on the esbs criteria can be found here.

Why choose esbs?

It can sometimes be trickier to secure a mortgage on an MMC property than a traditional build, but some lenders are more likely to consider applications. A report from the Building Societies Association says: “Building societies are generally receptive when it comes to accepting MMC as suitable security for mortgage purposes”. This is certainly true for esbs who review applications on a case-by-case basis, treating customers individually to determine the right product. Their knowledgeable advisers are on hand to help throughout the entire process.

Paul Tilley, Chief Executive of esbs, said: “We are proud to be supporting potential homeowners in their dreams of creating an MMC home.

“Therefore, I would urge these people to get in touch with us right away to discover their options in pursuing their self-build project.”

To apply for a mortgage you must be aged 18 or over. All applications will be subject to valuation, status and the Society’s Mortgage Conditions. We offer an advised sales process where we ask questions regarding your mortgage requirements/needs and your income and expenditure to ensure that we recommend the most suitable product for you. We will accept applications from applicants purchasing or remortgaging in England or Wales. For further information, or for a European Standardised Information Sheet (ESIS), please call on 01455 844422 and speak to one of our mortgage advisers, visit one of our branches, email, or visit


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