CONVERSION MORTGAGES
Find out how they work, how much you can borrow, view current rates and get the free barn conversion guide….all one hundred thousand words of it for FREE!
How Do Barn Conversion Mortgages Work ?
The main difference between barn conversion mortgages over a traditional mortgage is that the money is released in stages as the build moves forward, rather than as a single amount.
Lenders will release funds for clients to buy land, subject to the plot having a minimum of outline planning or permitted development rights, usually referred to a class Q for barn conversions.
Typically 20% cash deposit is needed against the cost of the whole project (purchase of land & build costs).
Barn conversion mortgages are “term” products so no separate “exit” strategy is required.
Most lenders will allow a product transfer to their standard mortgage range, post build and waive any early redemptions penalties.
Those who already own land can use the current barns value to draw funds on day one prior to the build starting, if your circumstances allow, 100% of builds costs could also be funded.
Lenders will want to agree the full facility required at the out of your barn conversion.
Any barn conversion lender will want to see that the project financials are covered to ensure the project will get to practical build completion. This means that the loan and or any savings must cover the purchase price of the plot and build cost.
Stages of funds being released can vary slightly from project to project depending on the lender and the construction mechanism you are using.
Each lender will want to see a contingency included within your costs of between 10%-20%
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Why Is It More Difficult To Get A Barn Conversion Mortgage
There are less lenders available for you then if you were buying a completed property. Currently none of the top high street banks fund self or custom build.
Of the lenders available each will want a detailed cost report including contingencies. Each lender has a different contingency requirement and may even have a minimum build cost they will lend against.
Even though all the self build lenders will agree your full facility at the outset they will release your funds in phases. As part of any application, they will want to see a cashflow forecast to ensure that the way their product releases monies will fit the requirements for your builds cashflow needs. If it doesn’t, they won’t fund.
The lender will need to know the details of the proposed development including the super structure, how the outer skin is attached, what it is and what certifications each element has. Every lender has differences in their criteria and nuances as what is and isn’t accepted.
Your lender will need to know what level of involvement you intend to take and who will be involved in the build. Some lenders are completely happy for you to lay every brick, others are not and this will depend on the development you have planned and your own circumstances.
Self Build lenders will require specific build insurances such a warranty and site insurance. Certain lenders accept some providers and not others and each lender can have different insurnace requirements.
How Much Can I Borrow On My Barn Conversion Mortgage?
Pop over to our barn conversion mortgage calculator and find out within 5 minutes how much you could borrow.
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Fees To Pay My Barn Conversion Mortgage?
Mortgage Interest Rate. Find out the current rates below
Potential cost of full structural report
Cost of conveyancing
Cost of warranty insurnace
Site insurnace cost
Your lender may have a product fee
Our broker fee. Covered by our money back guarantee
Valuation fee and stage releases reinspection fees
Latest Barn Conversion Mortgage Rates
Barn Conversion Typical Stage Draw Downs
Purchase of land (re-mortgage if owned)
Strip back and securing of exiting structure
Foundations/Purchase of MMC (if applicable)
Wall plate level/MMC erection (if applicable)
Wind & Watertight
First fix & plastering
Second fix to completion
*MMC=modern method of construction, such as SIPS or ICF
We understand your problem because we’ve been there……
Mayflower was born after our two directors Mike and Lulu embarked on their own construction project over a decade ago and found the finance market limited and complex
Listen to the Self Builders Podcast and learn from those who have done it!
Why Work With Mayflower For Your Barn Conversion Mortgage?
We are family run business that place our clients at the heart of everything we do.
We’ll provide you with a FREE fully costed build report and quantified schedule Worth £1000.
We’ll Provide you with FREE photo realistic images of your finished project. Worth £700.
1-2-1 support from initial call to build completion.
Get instant Access to our Self Build Savers Solution. Our client discount scheme. Find out more below.
We have exclusive products only available through Mayflower.
Construction finance is all we do. What’s complex for others is our daily business.
We are a gold partner with NaCSBA and adhere to their code of practice.
We give you FREE access to industry leading procurement software, used by the tier 1 house builders. Get all your tendering done with a click of a mouse
All of our advisers are construction finance experts.
We aid with planning the cash flow forecast for your project.
You’ll be working with a firm that has a 5 star service rating
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If you don’t feel we’ve delivered on value or service, we’ll refund any fees that have been charged by us…. PLUS we don’t charge any upfront fees.
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3 simple steps to get funding
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1. Sign up to our Self Build Savers Solution or book a free call with one of our self build experts
We will be able to explain the whole process today, how much you can borrow, how much it is likely to cost and ultimately if your project is feasible to fund.
When you sign up for our Self Build Savers Solution you’ll be sent an email explaining how to get instant access to all of the features.
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2. If you’re ready to move forward
We give you a decision in principle with lender backed terms. We take care of all the paper work and walk you through next steps.
If you’re not moving forward with a mortgage you can still access our Self Build Savers Solution.
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3. We submit your application
We wont just place your case. You’ll have your dedicated self build expert with you until build completion.
FAQs
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The simple answer is YES. This will, However depend on your circumstances.
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The answer is YES. However the project will dictate which level of planning you require. A lot of projects we help fund have only permitted development approved. Ask your local authority if you the building you want to convert falls under permitted development or needs a full permission.
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Absolutely
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You most certainly can
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Just because your credit is impaired does not necessarily mean you would not be eligible for a Self Build. We would have to review your credit history.