Mortgage boost for self builders

The Housing Secretary announced a new scheme for self builders giving them a £150 million boost making it easier for them to secure mortgages.

 

Robert Jenrick said the "help to build" initiative would lower deposits for prospective homeowners seeking to commission a made-to-order property based on existing designs or build their own house from scratch.

 

This follows the introduction of 95% Government-backed mortgages set out in the Budget which are available for all homes worth up to £600,000. It is estimated that the latest scheme for self-builders could deliver between 30,000 and 40,000 new homes a year, while major lenders including Santander, Barclays, HSBC, Lloyds, and NatWest are launching the 5 per cent mortgages, which ministers say could help two million people get on the property ladder.

 

Comment was made, "Building your own home shouldn't be the preserve of a small number of people, but a mainstream, realistic and affordable option for people across the country. That's why we are making it easier and more affordable, backed by over £150 million new funding from the Government."

 

Mr Jenrick said, "Our plans will help get more people on to the housing ladder, ensure homes suit people's needs – like home working or caring for relatives – whilst providing an important boost to small builders and businesses too."

 

Similar to Help to Buy, the scheme will provide an equity loan on the completed home. Further details on the criteria and how to apply will be confirmed later in the spring.

 

 

Collings Solicitors

Altrincham