162 Ikea 'flatpack homes' have been given the go-ahead by Worthing Council but would-be buyers now face the challenge of getting a mortgage on a building made from 'non-standard materials'.
According to The Times, banks are now visiting the prefab factories to get a better understanding of the materials and construction processes, to improve their understanding of what their loans are buying. They are also carrying out extensive research into the potential resale value of such properties.
Ikea want to put together a mortgage package that is viable for couples such as a teacher and nurse on a £53k joint salary. The flats will cost around £250k and be available with a 10% deposit on a 30-year mortgage at 4.2%.
Banks will no-doubt as a minimum require BOPAS insurance to cover the elements built off-site, as well as the usual 10-year structural warranty.
What are your thoughts on this as an affordable housing solution?