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Mortgages for self-build homes still available, says expert

May 20, 2008 by admin  
Filed under News, News-Mortgages

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People interested in building their own homes can still find mortgages, despite finance being scarce due to the credit crunch, the editor of Homebuilding.co.uk has said.

Jason Orme stated that mortgage lenders often view self-build houses as a “fairly safe bet”.

“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,” commented Mr Orme.

He added that there may be some lenders that are still offering 90 per cent or even 95 per cent loan-to-value ratios.

According to Rightmove’s May House Price Index, the average asking price for a newly marketed property rose by 1.2 per cent between April and May to a record £242,500.

However, the index also showed that house prices fell by 0.1 per cent in April.

Tags: expert, self build mortgages, average asking price, equity, Homebuilding.co.uk

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