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Self-building 'still attractive to mortgage lenders'

Individuals interested in building their own property from scratch are still being viewed with optimism, according to a leading mortgage and house-building expert.

Jason Orme, the editor of Homebuilding.co.uk, said that mortgage lenders still view self-build properties as an attractive investment despite the continuing credit crunch.

He noted that having built up equity from nothing, most self-build properties would market for up to 30 per cent higher than their mortgage value.

Mr Orme added: "There are lenders who are still offering 90 per cent mortgages, and quite possibly 95 per cent mortgages, in terms of loan-to-value."

According to Rightmove's May House Price Index, the average asking price for newly marketed property rose by 1.2 per cent in the last four weeks, reaching £242,500, a new record high.

However, overall average property prices continued to decline by a further 0.1 per cent.

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© Adfero Ltd

20/05/2008 15:20:18

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