Can you get a loan for subsidence repairs?
Funding may be considered for repair work, but availability can depend on the property's condition, the cause of movement, insurance position, valuation, affordability and lender criteria. An active or unexplained structural issue may limit options. A structural engineer's assessment and the relevant insurer's position can be important evidence before any borrowing decision is considered.
Before considering finance, it is generally useful to locate the insurance policy and any claim correspondence, a structural engineer's report if one exists, evidence of monitoring or completed repair work, and any contractor scope of works. This page does not assess eligibility for any individual property.
What is subsidence and what evidence may be needed?
Subsidence is downward movement of the ground supporting a building, which can affect foundations and cause structural damage. The cause and severity cannot be determined from photographs or a general guide. A lender or insurer may require professional evidence about the condition, remedial work and insurability before making its own decision.
A structural engineer's report can help identify the likely cause, the scope of any damage and recommended remedial work, though obtaining a report is not itself a guarantee that funding or insurance cover will follow.
Will a mortgage or second charge be available on a property with subsidence?
A mortgage or second charge may be harder to obtain where a property has active, unresolved or poorly documented structural movement. A lender's decision can depend on valuation, repair evidence, insurance, equity, affordability and its own criteria. Historic, resolved issues and active subsidence are different circumstances, so no guide can predict an outcome.
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This table is illustrative only and does not predict how any individual lender would treat a specific property. Related risk information for secured borrowing is set out in second mortgage risks.
What are the risks of borrowing for structural repairs?
Borrowing can add a repayment commitment while repair costs, timescales or insurance outcomes remain uncertain. When a loan is secured on a home, missed repayments can put the home at risk of repossession. Total costs, fees, term and any early repayment conditions require comparison using the actual regulated documentation, not headline monthly payments alone.
Risk factors worth considering before borrowing for structural repair work include changes to the scope of works, insurance excess or coverage limits, valuation outcomes, ongoing affordability, and any contractor guarantees connected to the repair itself. General funding routes for home improvement work are covered on home improvement loans.
Sources
- Building regulations approval (GOV.UK)
- Home insurance (MoneyHelper)
- MCOB 13: arrears and repossessions (Financial Conduct Authority)
Frequently asked questions
Does home insurance cover subsidence repairs?
Whether a home insurance policy covers subsidence depends on the specific policy terms, the cause of the movement and the facts of the claim. The insurer is best placed to confirm cover for an individual case, and MoneyHelper provides general, independent information about home insurance and claims.
Can I remortgage a house with subsidence?
A lender assesses each application individually, considering the property's condition, valuation, insurance position and supporting documentation among other factors. A general guide cannot state whether a remortgage would be available on a property with subsidence, since criteria vary between lenders and cases differ significantly.
Will subsidence affect a property valuation?
A valuer may take a property's condition and any subsidence-related evidence into account, but the guaranteed effect on a specific valuation cannot be predicted by a general guide. Providing clear, professional evidence about the cause, extent and any remedial work can help the valuer form an assessment.