July 22, 2009

There’s More To Flexible Mortgages Than Offsetting Savings

Not many people know it, but there is a lot more to flexible mortgages than just offset loans – there are several lenders in the UK offering flexible mortgages for those who want finance to build their own home as well.

In fact, self-build mortgage specialist BuildStore has revealed a 39 per cent year-on-year increase in self-build finance enquiry levels throughout the last quarter – more people are realising that if they have the time, patience and expertise, there are a lot of benefits to building your own home.

Self-build mortgages work by offering the borrower lump sums through the house-building process. So the borrower might need a lump sum to buy the land, then smaller sums as the months go on so as to afford to build a property. Then, by the end of the process, the borrower has the home of their dreams and a working mortgage to pay off.

BuildStore chief executive Raymond Connor says: “We have always recognised the appetite for self-build, but with the current market conditions, there is now a real demand from frustrated homeowners wanting to build their way out of the recession.

“With certain conditions appearing to favour the self builder, such as increased land availability, falling land prices, and plenty of tradesmen looking for work, it is vital to have the right type of funding available. BuildStore continues to work with a number of lenders to widen the availability of self build lending to help meet the current demand from prospective homebuilders.”

Of course, there is nothing simple about building your own home. It’s a tough process that can cost more than you think, take longer than you think and will probably lead to a few more grey hairs. But many people still take up the challenge each year – only after taking a lot of advice from professional across the housing industry, including a good mortgage adviser. Self-build loans need a lot of time, a lot of planning and a lot of experienced advice if they are to work as they should.

SOURCE: BuildStore, 16/07/09

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