Can You Get A Mortgage For Land In The UK?
Not everyone is interested in buying property. Sometimes people are more interested in buying land. But can you get a mortgage for land? We’re answering this question in our helpful guide.
Can you buy land with a mortgage?
Whether you’re looking to build your own house, complement your agriculture-based business or acquire land for other business purposes, it can be helpful to know that you can indeed buy land with a mortgage.
These mortgages are very different to your typical residential mortgage.
Is it hard to get a loan for land?
Lenders can be a little stricter when it comes to their criteria for handing out specialist land mortgages. It’s all about proving that you’re not much of a risk and weighing up the potential financial gain that your land purchase, development and use could bring to the table.
There are different types of land mortgages available
Self build mortgage
These mortgages are specially designed for intrepid people who want to build their own house.
A self build mortgage offers a unique type of loan, divided to cover the costs of the land and the cost of building the proposed property. The loan money is provided in stages – firstly to acquire and prepare the land, and then to allow the purchase of building materials and work to be completed.
Agricultural mortgage
This is usually as part of a business venture.
Woodland mortgages
These are similar to agricultural mortgages and the woodland purchased can be used as a private sanctuary or as a future investment.
Commercial development mortgage
Sometimes businesses want to acquire land that they can build commercial premises on or are seeking to expand their business through the purchase of land. A commercial development mortgage can help with that.
At Agentis we can help you find a specialised land mortgage that works for you. Contact us today to arrange your free initial consultation and speak to one of our experienced mortgage advisors.