Mortgages on off-plan properties 'involve risks'

Date:Thursday 29th October 2009
Author: Max Freedman

A sector commentator has informed consumers that they could be opening themselves up to risks by purchasing off-plan properties.

Helen Adams, managing director of, pointed out that there is not much protection when people make this kind of purchase.

She commented that she would "think twice" before investing in an off-plan house and prefers to use an established company.

In this way, buyers are able to get credit references to ensure the company will not be going bankrupt any time soon, Ms Adams continued.

"While in the past it has been advantageous to get in early, there are certainly risks to it at the moment. But that is not true in every case," she added.

Berkeley Homes recently reported that some customers of off-plan housing are finding it hard to complete their purchase.

A key issue is that they cannot be released from their contract so they must continue to make payments.