Help to Build will be a huge boost for self build sector, says BuildLoan
BuildLoan welcomes the Government’s announcement on the Help to Build scheme as it offers wider opportunities for people to build or customise their own home.
The new scheme also brings new opportunities for brokers to widen their client base and for lenders to expand their mortgage range.
Help to Build works along the same lines as the Government’s Help to Buy scheme. The borrower pays a 5% deposit, the Government provides a loan of 20% and the other 75% of the build cost is through a self build mortgage. The main difference between Help to Build and Help to Buy is that the Government loan is paid to the mortgage lender rather than the house builder.
Raymond Connor, CEO of BuildLoan, comments:
“We are extremely supportive of the Help to Build scheme and have been advocating this for a long time. It is similar in nature to the Help to Buy Equity Loan scheme and will be a real boost to the self and growing custom build market.
“This scheme opens up self build to more people as they only need a 5% deposit instead of typically 20%. We know there is pent up demand for people wanting to build their own home as evidenced by 55,000 people signed up to local authority Right to Build registers.
“Volume house builders dominate the new build market but this scheme will open up opportunities for SME property developers to expand the custom build sector.
“This announcement demonstrates the Government’s commitment to the diversification of housing in the UK by supporting self and custom build.
“In anticipation of this announcement, BuildLoan has been developing products to support the Help to Build scheme and we are working with lenders ready and willing to lend.”