If you’re planning to convert a barn into a home, you may find that getting a mortgage can be complex with fewer lenders to choose from. Here, we’ll explain how barn conversion mortgages work, details around getting a mortgage, how much you can borrow, and alternative financing options to consider.
Can you get a mortgage for a barn conversion?
Yes, you can, but it depends on the project’s stage and how much work is needed. If the building is still a shell or in need of major renovation, you’ll usually need a specialist barn conversion mortgage or a self-build mortgage.
These products are designed for properties that are not yet habitable or need funding released in stages as the work progresses. If the barn is already converted and suitable for immediate residential use, you can often apply for a standard residential mortgage.
Lenders will look closely at planning permission, building regulations, structural reports, and your plans for completing the project before deciding what type of finance to offer.
How does this work?
A barn conversion mortgage works slightly differently from a traditional home loan. Rather than lending the full amount upfront, the lender usually releases funds in stages as the project progresses. Here’s what the typical process will look like:
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Stage 1: Purchase of the barn or land.
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Stage 2: Completion of initial structural work.
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Stage 3: Roof, windows, and weatherproofing.
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Stage 4: Internal works and finishing.
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Stage 5: Completion and final sign-off.
Some lenders offer payments in arrears (funds released after you complete each stage), while others provide payments in advance (funds released upfront before you complete the work).
This staged approach reduces their risk by ensuring funds are released only as the property's value increases during the build.
Does it cover self-build conversions?
Yes, a barn conversion mortgage is typically considered a form of self-build mortgage because the borrower is responsible for overseeing or funding the construction process.
If you’re managing the build yourself or working with contractors, a bespoke self-build mortgage may be the most suitable option.
These can provide flexible stage payments and can cover everything from materials and labour to professional fees and building control costs.
Eligibility criteria for these mortgages
When applying for a barn conversion mortgage, lenders will carefully assess several key factors:
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Property type: The barn must be structurally sound or capable of conversion using standard building methods. Timber, steel, or stone structures are often acceptable, but non-standard constructions, listed buildings or agricultural buildings can limit your options.
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Valuation and build costs: A surveyor or valuer will assess the property at each stage to confirm progress and determine how much additional funding can be released. Energy efficiency standards (such as the projected EPC rating) can also play a role.
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Planning permission: Full planning consent and building regulations approval are usually required before funds can be released. Most lenders will also request detailed conversion plans and costings. In some cases, this might mean needing Class Q or listed building consent before applying.
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Experience and background: If you have prior experience with renovation or construction, this can strengthen your application. First-time builders may need additional professional support, such as a project manager or architect.
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Deposit and affordability: You’ll usually need a deposit of at least 20%, depending on the stage of the build and overall project costs. Also, as with any mortgage, lenders will assess your income, employment, and outgoings to ensure repayments are affordable.
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Exit strategy: If your project involves temporary finance, lenders will want to know how you intend to eventually repay the loan. For example, this could be by refinancing onto a standard residential or buy-to-let mortgage once the barn conversion is complete.
How to get a mortgage for a barn conversion
Applying for a barn conversion mortgage is more complex than a typical home loan, so preparation is key.
Here are some steps to improve your chances of getting a mortgage:
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Work with a specialist broker: Most lenders for barn conversions are only accessible through brokers. A specialist advisor can help you find suitable lenders and present your project in the best light.
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Prepare detailed plans: Include architectural drawings, planning permission documents, build schedules, and cost estimates. The clearer and more professional your plans, the more confidence lenders will have in your barn conversion.
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Secure planning permission early: Having full planning consent in place before applying can significantly speed up the process.
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Create a realistic budget: Build costs often exceed initial estimates, materials and other prices can rise over time, so include a contingency buffer of at least 10% to 15%.
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Get professional support: A project manager, surveyor, or architect can provide reassurance to lenders that the build will be completed safely and to a high standard.
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Use stage payments effectively: Plan your cash flow carefully to avoid delays between stages and ensure materials and labour for the barn conversion are paid on time.
Begin your mortgage journey
Calculating how much you can borrow
How much you can borrow for a barn conversion depends on how lenders assess your income, deposit, and the property’s end value once complete. Unlike standard mortgages, affordability is often based on the projected post-conversion value rather than the barn’s current condition.
Most lenders will fund up to around 75% of the land or property value and up to 85% of the total build or renovation costs, releasing money in stages as the project progresses. This helps ensure the work remains on track and within budget.
As with other mortgages, on average, you can borrow around 4 times to 4.5 times your salary, though higher multiples may be available for strong applications. For an accurate figure based on your specific project and finances, it’s best to speak with a mortgage broker who has experience with barn conversions, but you can use ourt affordability calculator below to get a rough idea.
Available UK mortgage lenders
While many mainstream lenders and high street banks like Halifax avoid barn conversions due to complexity, several UK lenders and building societies do offer specialist products, usually through brokers.
Here are two examples of mortgage lenders for barn conversions:
Ecology Building Society
Offers a “conversion mortgage” product, which could be suitable. But, you must be converting your barn into an energy efficient building that’s EPC B (SAP rating 85+) to EnerPHit standard, and using locally sourced materials where possible.
If approved, Ecology Building Society will release up to 80% of the plot purchase price or value of the property in stages to cover the required build costs. As your barn conversion progresses, staged payments of up to 80% of your increased property value will be released in arrears.
BuildLoan
Although not a lender, BuildLoan understands some of the complexities you may face, particularly around the fact that your barn may actually drop in value partway through the conversion as you strip it back or need to take significant measures like removing the roof.
As a result, for some borrowers, it can help you find up to 95% loan-to-cost (LTC) lending for the land or property and building costs. It will also aim to secure guaranteed stage payments (before or after each stage of work), regardless of valuations.
These are just two examples to give you an idea because each lender’s terms vary depending on project type, location, and borrower profile, so it’s worth getting some expert advice if you want to find the best option.
Alternative types of finance to consider
If a barn conversion mortgage isn’t suitable or you need greater flexibility, there are several other finance routes to explore:
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Self-build mortgages: Specifically designed for projects built or converted by the owner, with stage payments released throughout the build.
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Bridging loans: Short-term finance that can help fund the purchase or early construction stages until a long-term mortgage becomes available.
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Development finance: Tailored for larger or more commercial-scale conversions, especially where multiple units are involved.
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Remortgage or equity release: If you already own a property, remortgaging or releasing equity can help fund conversion costs or provide a deposit for stage funding.
Why choose Money Helpdesk for your barn conversion mortgage?
We specialise in helping people turn barn conversion projects into successful, mortgage-ready homes. If your plans fall outside standard lending criteria, our brokers know which lenders are most open to barn conversions and can match you with the right one.
Because our advisors have experience with complex property conversions, they know how to present your application to lenders and they’ll also do all the legwork to find the right lender with the most competitive rates.
Here are some more of the reasons people choose us to help them get a barn conversion mortgage:
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Access to brokers who specialise in conversions and self-builds
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Your first chat is free with no obligation to proceed
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Our advisors have 5-star ratings on leading review sites
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Introductions to lenders offering tailored finance for barn conversions
If you’d like to compare the latest rates for free or speak with a broker who specialises in barn conversion mortgages, you can get started here.
FAQs
Rates for barn conversion mortgages are usually higher than standard residential loans, reflecting the additional risk and complexity involved for lenders.
However, once the conversion is complete and signed off, you may be able to remortgage to a standard residential rate, which is typically lower.