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Small lenders best for self-build schemes

Individuals looking to go down the self-build route should target small, local lenders when it comes to getting funding.

Colette Best, mortgage policy adviser at the Building Societies Association, noted a lot of people still consider this option to be “quite specialised”, which may be of interest to builders in Wolverhampton.

Because of this, deciding to go to a big lender could be a bad idea as they will use an automated system to decide whether or not to give out money.

One of the main benefits of a scheme of this type is that once it is completed, Ms Best remarked people can look forward to “a really great loan-to-value”.

When it comes to financing the project, the specialist remarked people should never use unsecured lending such as credit cards.

It comes after Savills reported that land values for central London locations have risen by four per cent in the last six months.

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