Lenders ought to provide people planning self-build projects fixed rate mortgages of as long as 25 years.
This is according to housing minister Grant Shapps, who told the Building Societies Association in London that deals like this are common in countries such as Scandinavia and Germany.
“It would be a canny lender who decided to test the market,” he stated, pointing out that there are a large group of Brits who require this finance and are disappointed with the products on offer.
The minister noted figures from BuildStore reveal 15,000 construction projects of this type were initiated over the last 12 months, but only 46 of these were repossessed.
Mr Shapps stated the industry is worth £3.6 billion in the UK, even though it is one “many think of as small”.
“I’m working with the National Association of Self Builders to bring about a self-build revolution,” the MP asserted.
He recently hailed the progress made in the releasing of public land, which could be the site of up to 100,000 new builds.