Mortgages ’still available for self-build homes’

Posted 2008-05-19

Mortgages are still available for self-build homes despite the effects of the credit crunch being felt elsewhere in the market, it has emerged.

Jason Orme, editor of Homebuilding.co.uk, states that most self-built properties have “an inbuilt equity from scratch” of between 25 and 30 per cent greater than the cost of the mortgage ? making them attractive to lenders amid unstable house prices.

He adds that such developments are often regarded as a “safe bet” when applying for a mortgage.

“In terms of the actual market itself, I believe there are still lenders who are still offering 90 per cent mortgages, and quite possibly 95 per cent mortgages, in terms of loan-to-value,” continues Mr Orme.

According to Rightmoves May House Price Index, between April and May the average asking price for a newly-marketed property rose by 1.2 per cent and reached a record high of £242,500.

In April house prices fell overall by 0.1 per cent.

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