Mortgages and finance > Conversion mortgages
Barn conversion mortgages made simple
Looking to finance your barn conversion? Discover everything you need to know about conversion mortgages - how they work, how much you can borrow and the latest rates. Plus, access our FREE 100,000-word barn conversion guide packed with expert insights on every stage of your project.
What is a conversion mortgage?
A barn conversion mortgage, or conversion mortgage, is a specialised loan designed to finance the transformation of an existing structure, like a barn, into a residential home. The main difference between these and traditional mortgages, which finance the purchase of a completed home, is that conversion mortgages release funds in stages as each project milestone is met, similar to self build mortgages. However, they’re tailored specifically for conversion projects, accounting for the unique challenges and costs of repurposing a structure rather than building from scratch.
How do barn conversion mortgages work?
A barn conversion mortgage releases funds in stages as your project progresses, rather than providing a lump sum upfront, allowing you to manage costs at each construction phase. This funding model is ideal for projects requiring flexibility and aligns with how costs arise during a conversion.
Stage payments
Funds are released as the project progresses, typically after each construction milestone.
Land purchase funding
Lenders can release funds to purchase land if it has at least outline planning or Class Q permissions.
Deposit requirements
Generally, a 20% cash deposit is required against the project’s total cost, including both land and build expenses.
Flexible end product
Most lenders allow a product transfer to a standard mortgage without early redemption fees post-conversion.
Existing landowners
If you own the land, lenders may allow drawing on the barn’s value for upfront funds, potentially covering 100% of build costs.
Complete funding package
Lenders require full financial approval upfront, including a 10-20% contingency within project costs for unexpected expenses.
How much can I borrow on my barn conversion mortgage?
Use our free barn conversion mortgage calculator to find out within 5 minutes how much you could borrow.
Why is it more difficult to get a barn conversion mortgage?
Fewer lenders are available compared to completed property mortgages, with no funding from major high-street banks.
Lenders require a detailed cost report, including contingencies and possibly a minimum build cost.
Funds are released in stages, requiring a cash flow forecast to ensure it aligns with your project’s funding needs.
Lenders need specifics on the development structure, materials, and certifications.
Each lender’s criteria varies hughley
Self-build lenders often require specific warranties and site insurance, with differing provider requirements.
We’ve been in your shoes
Our two directors, Mike and Lulu, started Mayflower after they embarked on their own construction project and found the process confusing and difficult. Now, we have over a decade of experience in creating tailored solutions to make the experience easier for you.
What are stage drawdowns for barn conversion mortgages?
Stage drawdowns refer to the phased release of funds throughout your barn conversion project, which enable you to receive financing as specific construction milestones are completed. Typically, funds are released in stages, starting from the land purchase or remortgage (if already owned) through to critical construction points. For conversion mortgages, the typical stage draw downs are:
Purchase land or re-mortgage existing property
Secure and prepare existing structure
Lay foundations or purchase MMC materials (like SIPS or ICF)
Build up to wall plate level or install MMC
Make structure wind and watertight
Complete first fix and plastering
Finalise with second fix to completion
*MMC=modern method of construction
What fees do I have to pay on my barn conversion mortgage?
1
Mortgage interest rate
2
Potential cost of full structural report
3
Conveyancing costs
4
Cost of warranty insurance
5
Site insurance cost
6
Your lender may have a product fee
7
Our broker fee. You’re covered by our money back guarantee.
8
Valuation fee and stage releases re-inspection fees.
Our barn conversion mortgage success stories
Latest Barn Conversion Mortgage Rates
The example barn conversion mortgage rates displayed on this website are for illustrative purposes only and are based on current market conditions as of the date 11/06/2024. These barn conversion mortgage rates are subject to change without notice and may not reflect the most current self build mortgage rates available. The actual barn conversion mortgage rate and terms you may be offered will depend on your individual circumstances, including but not limited to your credit rating, loan amount, loan-to-value ratio, construction type, your involvement with the project management and cash flow requirements. The Fees noted have been calculated using a barn conversion mortgage loan of £250,000, fees may vary.
Start your conversion today, in just 3 steps
1
Book a FREE call
Speak with a conversion mortgage expert who can explain the whole process, answer your questions and give you instance access to our Self Build Savers Solution.
2
Get your decision in principle
When you’re ready, we’ll provide lender-backed terms and handle all paperwork for you. And if you’re not ready? You can still benefit from all our free resources.
3
We submit your application
Your dedicated barn conversion expert will be with you from start to finish, guiding you through the process until your build is complete.
Save thousands with our FREE self build savers solution!
Partnering with us gives you access to a wealth of free services, discounts, and cash back offers from national companies, potentially saving you tens of thousands. Best of all, there are no extra costs to access these benefits!
Your conversion mortgage service, with a money-back guarantee
We believe in delivering exceptional value, which is why our conversion mortgage service includes a full refund of any fees if you’re not completely satisfied. And to make it easier, we don’t charge any upfront fees.
How can we support your barn conversion journey?
Frequently asked questions
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Yes, you can stay in your current home while securing a barn conversion mortgage for your project. However, approval depends on individual financial circumstances, such as available income and how lenders view your current home loan in relation to the new project’s financing needs. Consulting a mortgage advisor can clarify your eligibility and options.
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Yes, planning permission is typically required for barn conversions. The level of planning needed depends on your specific project, as some conversions only need permitted development approval. You can contact your local authority to see if your building qualifies under permitted development or if a full planning application is required. For more insights, explore our Self Build Blogs for planning tips and guidance.
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Yes, first-time buyers are eligible for conversion mortgages. There’s multiple lenders who offer options tailored to those entering the property market through a barn or property conversion.
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Yes, retirees can qualify for conversion mortgages. Lenders typically assess income and assets to ensure that project costs can be covered throughout the build. Retirees should work with an advisor to find lenders with terms that fit their specific financial situation.
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Having bad credit doesn’t automatically exclude you from getting a barn conversion mortgage. Eligibility depends on your credit history and specific circumstances. A lender will carefully assess your credit history to determine eligibility. You may find helpful information in our FREE Self Build Encyclopaedia covering financial requirements and tips for financing self-builds.
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Funds are released in stages, based on the project’s development milestones. Initial funds may cover the land or property purchase, followed by phased releases as the conversion progresses. Each lender varies, so a detailed cost plan and timeline are essential for ensuring funds are available when needed. We can help you with all those details, but you can book a call with one of our experts to get more information on how this works.
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Yes, barn conversion mortgages require specific build insurances, including site insurance and a structural warranty. Not all insurance providers are accepted by all lenders, so it’s important you verify requirements with your lender before you secure coverage. Find out more information about insurance here.
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Most lenders allow a transition to a standard residential mortgage once your barn conversion reaches completion and meets occupancy standards. Some lenders even waive early redemption fees, making it easier to switch once the build is complete.
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Barn conversions must comply with building regulations covering structural integrity, insulation, ventilation, and safety standards. Requirements differ depending on the construction method and project specifics. To learn more, consult our FREE Self Build Encyclopaedia, which details building regulations for conversions.
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A barn conversion mortgage is specifically for transforming uninhabited structures that we not previously classified as C3 residential dwellings into residential spaces. Planing for the change of use needs to be in place and involves extensive structural work and compliance requirements. Renovation mortgages, on the other hand, apply to existing homes that already hold a C3 residential dwelling classification requiring updates or remodels.
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While it’s possible to self-manage a barn conversion, many lenders prefer or require an experienced builder or contractor to oversee the project. Some lenders may also request proof of experience if you intend to act as the main builder. Our Self Build Directory can connect you with qualified contractors experienced in barn conversions.
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The mortgage process for barn conversions can takes between 4-12 weeks, depending on lender requirements, planning permission, and your financial preparation. Working with an experienced mortgage advisor can help streamline the process and address potential delays early on.