Self-builders 'can still find excellent mortgage deals'
Published On 20 May 2008
People planning on building their own homes from scratch can still obtain competitive mortgages, an industry expert has claimed.Jason Orme, the editor of Homebuilding.co.uk, said that lenders were still happy to offer mortgages to self-builders, despite the credit crunch.
He explained that lenders viewed newly built homes as a safe bet, which meant they were still prepared to offer consumers planning construction projects competitive mortgage deals.
As a result, Mr Orme said that there were still mortgages with up to 90 per cent loan-to-value available for self-builders.
"Lenders in these kinds of times tend to view self-build as a fairly safe bet. Self-builders tend to be building houses that have an inbuilt equity from scratch," he added.
"Self-builders tend to benefit up to 25 to 30 per cent in terms of the equity - the cost of the mortgage compared to the end value [of the house]. That really is viewed as a good thing in difficult times by lenders."
Recently, Alliance & Leicester reported that more and more consumers were seeking advice from brokers about the most appropriate mortgages and the ways these could be obtained.
