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Self-build homes can still get mortgages
20 May 2008
Potential self-builders should be aware that the mortgage market is still healthy, according to a housing magazine.
Despite many mortgage lenders withdrawing their deals and tightening the criteria for applications due to the global credit crunch, self-built homes are still an attractive prospect as they "have an inbuilt equity from scratch", claims Homebuilding.co.uk.
Although the mortgage market has shrunk for many people looking to move home, mortgages for self-build projects are still available at up to 90 per cent loan-to-value while Lloyds TSB are still offering 95 per cent deals for self-built homes.
Jason Orme, editor of Homebuilding.co.uk, said: "Lenders in these kinds of times tend to view self-build as a fairly safe bet.
"Self-builders tend to benefit up to 25-30 per cent in terms of the equity – the cost of the mortgage compared to the end value [of the house]."
Research by the Chartered Institute of Building (CIOB) revealed that nine out of ten construction managers think the UK construction industry is suffering a skills shortage.
