Can I get a stage payment self build mortgage?

Can I get a stage payment self build mortgage?

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I have two properties. Property 1 is a bungalow on a large plot of land (no mortgage) with a value of £500k. Property 2 (where I currently live) is a detached house worth conservatively £500k (with a £180k mortgage).

I wish to knock down Property 1 and build a larger house on the plot (which will cost around £300k to construct). My aim is to fund the development by selling Property 2 once the development is complete.

I went to NatWest, who I have banked with for 35 years, but they said no as the computer said my salary wouldn't be able to cover the repayments of both mortgages (NatWest no longer has specialised products to cover staged payments / repayments).

In short I need to borrow £300k in stages and repay the lot (including fees / interest) when Property 2 is sold. Are there any lenders out there who cover this type of transaction?

Many thanks in advance.

Asked by Dynamo1