Can I get a stage payment self build mortgage?

15 January 2014

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.


Hi Dynamo,

Self build mortgages are available from some high street lenders, but not all. As you’ve found, those that don’t offer specialist support for this kind of finance product can struggle to understand the needs and situation of the self builder.

Your first port of call should be to speak to one of the experts at BuildStore, which is a specialist self build mortgage broker. They deal with a variety of lenders and should be able to help you secure the lending you need. We also keep a comprehensive list of the mortgage providers working in the self build sector here:

You can find BuildStore’s phone number in our product directory at or check out their website for more info.

Best of luck!

Chris Bates, Deputy Editor & Online Editor, Build It magazine

15 January 2014
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