'In-built equity' offers mortgage ease for self-build homeowners
20-May-2008
People who opt for self-build properties can get on the
first rung of the housing ladder with ease, regardless of economic instability.
That is the conclusion of experts at Homebuilding and Renovating magazine, who suggested that such individuals will have easy access to
mortgages as a result of "inbuilt equity".
"Lenders in these kinds of times tend to view self-build as a fairly safe bet," explained Jason Orme, the publication's editor.
"Self-builders tend to be building houses that have an inbuilt equity from scratch. [They] 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]," he added.
Mr Orme went on to note that - in contrast to much of the mortgage market - mortgages for self-build projects are still available at up to 90 per cent loan-to-value.
Last week, the National Association of Estate Agents emphasised that although the credit crunch has dented the confidence of
first-time buyers in particular, a return to steady mortgage market conditions is likely in light of low interest rates and "a pent-up demand for houses".
FirstRungNow.com - how to buy a house, from finding your first flat or first house, first time buyer mortgages, shared ownership, buying with friends, gifted deposit, part buy part rent - all a first time buyer could possibly need.
Housing market 'continues to be stable' First-time buyers 'can use credit crunch'
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