Is it possible to pledge an old house for new construction? Is it possible to take out a bank mortgage?

Hello,

is it possible to take out a mortgage on an old house in order to build a new house? It may sound silly, but the guy from the bank says it doesn't work the way I imagine. Has anyone done something like this before?

So why the banker said that it is not possible, I can hardly judge because there is too little information available for that. If you have a free and clear house, you can of course take out a land charge on it to secure a new loan. That is just a general statement on the issue.