Mayflower Frequently Asked Questions
Self Build Mortgage FAQ’s
A self-build mortgage is a tailored loan for those constructing their own homes, releasing funds in stages as the project progresses. This phased approach allows you to only pay interest on funds when needed. You can use our self build mortgage calculator to get an estimate based on your project’s needs.
How do Self Build Mortgages work?
Unlike traditional mortgages, self-build and custom-build mortgages release funds in phases as you complete key construction milestones, ensuring you only borrow what’s required when you need it. You can book a call with our team of experts to better understand the process and how we can support you.
How much can I borrow from a Self Build Mortgage?
Borrowing limits vary, as lenders assess your income and project costs. For an estimate based on your situation, try our self build mortgage calculator to see what you might qualify for.
Can I live in my current home whilst taking out a Self Build Mortgage?
Yes, it’s often possible to remain in your current home during the project, but this depends on your financial circumstances and borrowing limits.
Can first time buyers get a Self Build Mortgage?
Yes, self build mortgages are accessible to first time buyers, providing they meet the lender’s criteria.
How much deposit do I need for a Self Build Mortgage?
Usually, a 25% cash deposit on the total project cost is standard, though if you already own land, the required deposit may be lower. Read more about deposits for self builds in our self build mortgage blog.
How long does it take to process a Self Build Mortgage application?
Applications typically take 8-12 weeks, depending on the lender’s process and requirements. Your adviser can provide a timeframe tailored to your selected lender’s process once you have the ideal lender in place.
Barn Conversion Mortgage FAQ’s
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.
Do I need planning permission for a Conversion Mortgage?
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.
Are there any insurance requirements for Conversion Mortgages?
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.
What types of building regulations apply to Barn Conversion Mortgages?
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.
Do I need a builder or contractor for a Barn Conversion Mortgage?
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.
Renovation Mortgage FAQ’s
A renovation mortgage is a loan designed for transforming an existing property. They release funds in stages based on the progress of your renovations, allowing you to fund the project step-by-step while keeping costs manageable. You could be eligible to borrow more than the current value of your home.
What types of projects can a Renovation Mortgage fund?
Renovation mortgages can fund a wide range of projects, from small-scale refurbishments to major structural renovations or extensions. Whether you’re updating an old kitchen or adding a completely new wing to your home, a renovation mortgage can be designed to suit your needs.
What is the minimum deposit required for a Renovation Mortgage?
The minimum deposit for a renovation mortgage typically starts at 10% of the total project cost, though this varies by lender. Larger deposits may provide you with more borrowing power or better rates. Contact us to explore your options.
Are there any additional costs with Renovation Mortgages?
Yes, there may be additional costs with a renovation mortgage, such as valuation fees, planning fees, and legal expenses. It’s important to factor these into your overall budget. We’ll help you understand all associated costs to avoid surprises during your renovation.
Do I need planning permission for a Renovation Mortgage?
It depends on the scale and type of work you’re planning. Some smaller renovations may not require planning permission, but larger projects often will. Your local authority can confirm whether planning is necessary. If it is required, renovation mortgage lenders will typically need to see approved plans as part of your application.
Bridging Loans FAQ’s
A bridging loan is a short-term secured loan, typically lasting from a 1 to 12 months, used to "bridge the gap" between transactions, such as buying a home before selling your current one, or to access quick finance against property equity.
What can I use a Bridging Loan for?
Common uses include purchasing in auctions, funding renovations to make a property mortgageable, breaking property chains, covering delays in property sales, and providing fast cash for investment or development purposes
How much can I borrow with a Bridging Loan?
Loans often start from £25,000 and can go up to several million pounds. Loan-to-value (LTV) limits usually range between 65 % and 75 % of the property’s value, or combined security values for multiple properties. To get more information about your specific circumstances, you can book a call with our experts.
Who can apply for a Bridging Loan?
Applicants must be UK residents with sufficient property equity. Income documentation may not be required if the loan will be repaid via a refinance or sale, though bridging for expats may need additional proof of identity and assets. To understand if you could be eligible, you can speak with one of our experts about your situation.
Development Finance FAQ’s
Development finance is a short-term loan (usually 18–24 months) designed for property development, such as new builds, conversions, or major refurbishments. Loan approval is based on the project's Gross Development Value (GDV) rather than the current property value.
Who typically uses Development Finance?
It’s predominantly used by experienced property developers and investors. First-time developers can be funded too, but they may need more equity or partnership with seasoned developers to meet lender requirements.
How does the loan structure work?
Development finance is delivered in stages (drawdowns): an initial advance on land or property value, followed by tranche payments aligned with construction milestones. A monitoring surveyor typically verifies progress before each release. Chat with us to see how Mayflower can support you throughout.
Are extensions or rollovers possible?
If the project requires more time, lenders may allow term extensions. This is subject to lender approval, additional fees, and refinancing or repayment assurances
What’s the difference between Senior Debt, Mezzanine Finance, and Equity Finance?
Senior Debt: The primary loan, typically covering up to 60% of the project’s Gross Development Value (GDV). It’s the most secure and cost-effective option in the debt stack.
Mezzanine Finance: A secondary loan that sits between senior debt and equity, allowing you to increase your borrowing capacity. It typically requires a second legal charge and higher interest rates.
Equity Finance: Funding where lenders take a stake in your project and share in the profits. This option is ideal for covering up to 95% or more of your project costs when other finance options fall short.
Each type has its place, and we can help you choose the right combination for your project.