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Cornish IFA sets up firm after lenders put the block on mundic mortgages

A Cornwall IFA has set up a firm to provide loans on homes built of the substance mundic shunned by mainstream lenders.

Gary Martin is launching Mundic Home Loans in response to frustration of not being able to help clients get homeloans. Many homes in Cornwall built between 1900 and 1950 are made from mundic, which is an aggregate made from tin and sometimes lead mine waste, mixed with concrete.

The Royal Chartered Surveyors believes the material is not suitable for homebuilding and there are no mainstream lenders who will lend on homes built of mundic blocks. Surveyors’ guidelines state that some grades of mundic do not respond well to moisture.

Martin says clients with just a small mundic extension have been unable to secure homeloans but his company will lend on all categories of mundic block dense concrete and non-standard construction properties are also considered. Loans are available up to 75 per cent of property value.

Martin says Abbey National and Bank of Scotland both showed interest in the past in mundic homes but surveyors have put a stop to any changes.

He says: “I have owned several mundic properties and they are all still standing.I have extensive experience in mundic properties but surveyors refuse to review the guidelines.”

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