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By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 11th September 2019*

Whether you’re a first-time buyer or a home-mover, buying a new property can be exciting. However, it’s also fraught with many details to arrange, including your mortgage. If you’ve decided to purchase a property that includes a large acreage of land, the mortgage element of your purchase can become even more stressful, But, it doesn’t have to be.

We get a lot of enquiries from people wishing to buy their dream home with a lot of land. The circumstances differ, but worries over the need for a specialist mortgage are similar. We know that owning your own plot of land, for residential or commercial use is a dream for many people, which is why we would always recommend you speak with a qualified mortgage advisor, experienced in specialist mortgage provision.

To help give you some idea how to secure a mortgage for a large plot of land or a home that comes with a large acreage, we’ve written this article.

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Can I get a mortgage for a large acreage of land?

For many years, properties with land have been popular purchases and investments and the same remains true today. For some, buying a large acreage of land is their dream. It can allow them to build their very own home, while enjoying the land for the purpose of their choosing.

Or, that land could be an additional plot next to an existing residence that could be utilised for business use or to protect it from being developed.

Whatever the reasons for your purchase of a large acreage of land, in most cases you will be able to secure a mortgage. However, where commercial plans are involved or you the land is for agricultural use, you will likely require a specialist mortgage.

Some highly specialist lenders will approve a mortgage for a property with a large plot of land both where commercial use is intended or if it is set to remain rural and become an extended garden. However, they would still need to investigate your plans thoroughly and this may take time.

To help ensure your dream of buying a large acreage isn’t scuppered because the mortgage provider you use can’t agree to it, get in touch with an experienced mortgage broker, like those we work with. They can answer all your questions relating to mortgages for large acreage purchases and help you find the right lender and products for your specific needs.

Where can I get a mortgage for a home with a large acreage?

If you begin a search for a mortgage to buy property that comes with a lot of land, you might struggle to find what you need. That’s because large acreages can be classed as commercial use, agricultural, residential or mixed. These details mean the way a mortgage underwriter assesses your secured loan will differ from a typical residential mortgage.

Not all high street lenders provide mortgages for property with a large acreage. However, there are a number of specialist lenders who are used to handling mortgages for a variety of property and land purchases. That said, not all of them will be able to provide the mortgage you need. Or, if they do, the interest rates and terms you can secure may not be suitable.

Qualified mortgage brokers who understand the specialist mortgage market and the requirements of lenders for properties with a large acreage can help you understand everything you need to know, and help you secure the best mortgage for your needs.

To find out more, get in touch with Online Mortgage Advisor on 0808 189 2301 or use our online enquiry form. We’ll then put you in touch with a specialist mortgage expert to help you buy the land or property of your dreams.

What are the acreage limits for conventional mortgages?

If you’re buying land or property for residential purposes, you could still secure a mortgage with a high street lender. However, there are limits on the acreage they accept as part of a conventional residential mortgage.

The acreage limits on more conventional mortgages depends on the individual lender.

Mortgage lending acreage limits vary widely, from 2 acres to 15 and some lenders state they don’t ‘technically’ have any acreage limits on their conventional mortgage products.

This means that even if they take things on a case-by-case basis, you could expect to see higher mortgage interest rates, as well as  experiencing a delay in mortgage approval and the arrangement process.

If you’re a home mover, you could speak with your existing lender and ask about any limits on larger acreages for their range of mortgages.

While that will give you more information about what you could secure form them, it still means you can’t compare that with other lenders, including specialist ones who could give you the mortgage you need on a shorter time-scale, with a lower rate of interest and terms that are better suited to your specific needs.

Speak with an expert large acreage mortgage advisor

If you’re interested in finding out more about specialist lenders compared with high street banks for your large acreage mortgage needs, then get in touch with Online Mortgage Advisor today. Call us on 0808 189 2301 or use our online enquiry form.

Then, you can sit back and relax while we review your needs and connect you with the right mortgage advisor for your specific situation.

Updated: 11th September 2019
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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.