Self Build Mortgages and Barn Conversions

If you’ve found yourself scrolling through property portals looking at dreamy yet derelict barns, you may be wondering what kind of mortgage you get to fund the renovations.

There are a few options, one of which includes a self-build mortgage.

These are specifically designed for borrowers looking to either build or carry out significant renovations on a property, such as a barn conversion. 

How does a barn conversion mortgage work?

A self-build mortgage is released over the five key stages of the build or renovation of the barn which include:

 

  • Purchase of land / barn

  • Foundations / structural renovation

  • Eaves height completion

  • Implementation of watertight roof

  • Internal fixtures and fitting


Receiving staggered payments can help with budgeting and keeping on track with the progress of the barn conversion.

How can I get a self-build mortgage to renovate a barn? 

Self-build mortgages are a niche area and subsequently, fewer lenders are prepared to loan for these projects. This can make the process of finding a self-build mortgage lender tedious so you may decide that working with a broker is more efficient.

Our brokers know where the specialist UK lenders are, using their relationships to source and negotiate the best self-build mortgage rates.

If you’re unfamiliar with the process of getting a self-build mortgage for a barn conversion, an advisor can look at your options and explain how each one would specifically affect you and your finances. 

Will having bad credit make it harder to get a mortgage for a barn conversion?

Most lenders will prefer borrowers with a clean credit history so bad credit can result in higher interest rates and even a reduced selection of lenders to choose from.

Don’t let that put you off though - every lender has different criteria when it comes to what they will and won’t deem as bad credit. Ask an expert about your credit report and how it could affect your mortgage for a barn conversion.

Are converted barns difficult to re-sell?

It can be a good idea to speak to a mortgage advisor about the resale value of similar properties in the area you want to buy in. 

Having a better understanding about the potential profit or loss you may encounter in the future can help you make an informed decision about getting a self-build mortgage for a barn conversion.

The demand for converted barns varies across the country and location is often a factor that can affect the value of a restoration project. Reselling your converted barn may be easier if:


  • The conversion has been carried out to a high standard

  • The property has been well maintained and has modern technology including lighting and heating

  • There are no significant changes to the surrounding areas, such as a new housing development

Ask an expert

Some lenders can be cautious about loaning higher loan-to-value percentages for self-build mortgages, so getting a better understanding of how much deposit you may need and the amount you may be able to borrow, can help you prepare.

Chat to an advisor with experience in mortgage for barn conversions or call  023 8023 5555.


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