In This Article
What is a barn conversion mortgage?
A barn conversion mortgage could be considered one of two things.
It would either be a standard mortgage for a barn that has been converted already or a bridging finance product to convert a barn into a house.
If the mortgage is of the first type, this will likely just be a standard mortgage product, however, the lender would need to accept this type of property.
Construction of the barn will be important, for example, the brickwork and the roof meet the lender’s criteria.
During the mortgage process, the lender would instruct a survey on the barn so the surveyor can confirm whether it is suitable for mortgage lending.
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Do all lenders offer barn conversion mortgages?
Not all lenders are going to accept barn conversions due to their construction.
It will depend on the individual property, however, if the conversion is not up to modern-day standards, some lenders will likely decline the property.
There will however be lenders that can accept this type of property when they understand the full details of the construction.
Your mortgage adviser will be able to confirm which lenders can accept the barn conversion and recommend one based on your situation.
If you would like I NEED ADVICE to match you with a mortgage adviser with the experience needed to arrange a mortgage on a barn conversion, please complete the contact form.
I want to buy a derelict barn to convert, what type of mortgage do I need?
If you are looking to buy a barn that is not fit for residential use, standard mortgage lenders are not going to finance this property.
In this scenario, you will likely need a bridging loan to purchase such a property.
Bridging loans are short-term finance products that can be used to purchase properties that are not suitable for standard mortgages.
This is on the basis that the property is then converted to an acceptable standard where it can then be refinanced in the future or sold.
Your mortgage adviser would need to confirm whether meets the criteria for a standard mortgage or if it would need a bridging loan product.
Could I get bridging finance for a barn conversion if I have bad credit?
It is possible to get bridging finance even if you have bad credit. With a bridging loan, interest is usually retained on top of the loan and repaid when the loan is exited.
This could be through a sale of the property, or a refinance.
If you plan to refinance the barn conversion in the future, you should tell your mortgage adviser to confirm that based on your credit file and scenario, you would be likely to be accepted for a standard mortgage. You should find this out before considering this type of finance.
Adverse credit can mean many different things and comes in all kinds of shapes and sizes.
Bad credit can consist of property repossessions, defaults, County Court judgements, debt management plans, bankruptcies and more.
Your mortgage adviser would need to understand your credit file when searching for a suitable lender for you.
If you would like to learn more about your credit history and view your credit file, you can go to Check My File to sign up for a free trial.
Could you get a buy to let barn conversion mortgage?
It is possible to get a buy to let mortgage on a barn that has been converted.
This is, however, subject to the lender’s rules around property construction.
If the barn has been converted to a high standard, some lenders can accept this on the basis that the barn will be left to tenants on completion.
The amount of lending that may be available on a buy to let barn conversion will depend upon the overall value of the converted barn and the expected rent the property will generate.
Look for a mortgage adviser that has experience in both buy to let lending and unique properties.
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Would a first time buyer get a barn conversion mortgage?
There is no reason why a first time buyer would not get a mortgage on a barn conversion.
There is no shortage of lenders in the market that lend to first time buyers so this gives them a wide scope of lenders to explore.
Similarly, like with any other mortgage applicant, the lender needs to be comfortable with the converted barn, and that it meets their property criteria.
If this is the case, and the first time buyer meets the lender’s criteria in terms of affordability and credit history, there will be lenders that can consider first time buyers buying barn conversions.
Would I need a special type of mortgage adviser for a barn conversion mortgage?
You would not need a certain type of mortgage adviser to arrange a standard mortgage on a barn conversion, however, you should make sure your broker has the correct experience relevant to your situation.
They would need to understand the details of the barn conversion so they can liaise with the lender (and potentially the lender’s surveyor) to get confirmation that it seems to meet their criteria.
If you are taking bridging finance to convert a barn, you should look for an experience bridging broker that can give you your options.
Would you get a commercial mortgage on a barn conversion?
It is possible to get a commercial mortgage on a barn conversion.
Somebody may be buying a converted Barn which has been turned into offices and now requires a mortgage. Barn conversions can make very interesting offices!
The commercial mortgage lender would need a full understanding of what you plan to do with the barn, whether you will run your business from it yourself, or let it to another company.
Commercial mortgages are only available via specialist lenders so find a broker that can give you advice on which lenders may accept a converted Barn for commercial use.
Lenders would need to understand your full financial situation, the same as your business, along with details of the commercial tenant if you plan to let the property.
Most commercial mortgage brokers are members of the National Association of Commercial Finance Brokers (NACFB).
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Conclusion
It is certainly possible to get a mortgage on a barn conversion, however, the main obstacle is often the construction of the barn.
The applicant’s circumstances will also need to be considered by the lender to meet their criteria.
If you were planning to convert a barn and use finance to do so, this will usually be a bridging loan.
Bridging finance is a specialist, so you should make sure your adviser has relevant experience.
If you would like I NEED ADVICE to match you with an adviser that can give you finance options for a barn conversion, please complete the contact form.
They are experienced, which can boost your chances of being approved.
