Irresponsible lending 'just one cause of the economic crisis'

There are a myriad of reasons for the current economic predicament and irresponsible mortgage lending just one of these, according to the Money Advice Trust.

A spokesperson for the trust claims that "there are lots of reasons" for the current situation but reckless lending has played a part in the downturn.

She went on to say that lenders have not gone through a person's budget sheet thoroughly enough and made "absolutely sure" that they could afford the repayments.

However, the same can be said for consumers, she added.

"They have maybe taken out mortgages that they could not afford because there is pressure to get on the property ladder due to a dramatic rise in property prices," the spokesperson claimed.

A self buildmortgage varies from a standard loan because the cash is released incrementally as the project develops.

There are different ways this money can be distributed and your choice of product will depend on your own particular circumstances so it is important to contact a self buildfinance expert to discuss options as early as possible.