Self-build mortgages to increase in number.

Is anticipated that self-build mortgages could significantly rise in number, increasing by around 141 per cent in the next three years according to figures released by the National Self-build Association.

A recent NaSBA report backs up announcements made by the housing minister Grant Shapps, who advises that the government plan to boost this sector of the property market.

The Government have promised to double the self-build sector through better self-build mortgages offered by lenders. In 2011 14,000 self-build homes were constructed which represents a tenth of all UK homes built.

Grant Shapps commented saying that the UK's self-build industry is behind the rest of the world. Home building opportunity is seen as something only for a select few. He added that he is pledging to back a self-build boom. He said that he wants to support the self-build industry to enable it to double in size in next few years.

Also announced was a new website to give advice and help. He added that the Government are working to identify an increasing amount of land to be developed, and are currently reforming planning regulations to prevent self-build aspirations becoming tangled up in red tape.

The Government's pledge alone will not be enough to boost the self-build sector. Lenders will need to back the initiative and offer more self-build mortgage deals.

Currently UK mortgage providers offering self-build mortgages include the Progressive Building Society who offer a 2 year discounted tracker mortgage at a rate of 3.75 pc for 60 pc LTV and a 3 year fixed rate deal at a rate of 4.25 pc for 60 pc LTV.

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