Getting a Mortgage on a Large Acreage

Many people dream of buying a rural property with a large acreage of land. You might want to build an additional residence on it, keep horses, run an Airbnb or campsite, or establish a smallholding. Whatever the reason, you’ll likely need a mortgage to make your dream a reality.

Not all lenders can offer a mortgage for this type of property, particularly if you plan to use the land for commercial purposes. Policy varies from lender to lender, so you may need advice for your specific situation. We’ll explain the basics and how to find out more.

Can you get a mortgage on a house with a large acreage?

Yes, but the more acres of land a property has, the fewer lenders you’ll have to choose from. Almost all mainstream lenders will consider properties with up to three acres. Many will consider properties with up to 10 acres, on a case-by-case basis. Only a few will consider properties with over 10 acres.

Mortgages for homes with more than 10 acres of land

If you’re buying a home with more than 10 acres of land, it’s helpful to know that several lenders have specific guidelines on when they will consider lending.

• Atom Mortgages will potentially lend on properties with over 10 acres. Applicants must provide full details of the living accommodation, the total area of land, the current and intended use of the land, details of any outbuildings and details of any restrictions.
• Bluestone Mortgages will potentially lend on properties with up to 40 acres.
• Marsden Mortgages will potentially lend on properties with up to 15 acres, for non-commercial usage only.
• Saffron Mortgages will potentially lend on properties with up to 20 acres. These must be non-commercial, but applications for use as a hobby farm will be considered.
• Staffordshire Railway Building Society will potentially lend on properties with over 10 acres but would need to understand how clients will maintain the land.
• Tipton Mortgages has no limit on acreage.

It’s important to remember that, even if on paper the acreage fits within the lending criteria, the property will still be assessed on a case-by-case basis.

Often, mortgages of this type will need to be referred for manual underwriting, meaning your application will be under greater scrutiny. It may only be offered subject to a surveyor’s inspection.

So, you may need expert help to guide you through the additional complexity of your application and should consider speaking to a broker. If you’d like us to refer you to someone we work with, who has experience in large acreage mortgages, get in touch.

What type of mortgage will you need?

You might be able to buy a home with acreage with a standard residential mortgage.

To do this, lenders will typically require that the land:

• is held on a single legal title
• is not encumbered with any occupancy restrictions or planning requirements
• will not be used for commercial or business activity

If you do intend to use the land for commercial farming, you’ll need to apply for an agricultural mortgage.

If you’re using the land for another commercial purpose, you might need a different type of commercial mortgage or semi-commercial mortgage, e.g. a B&B and guest house mortgage.

How to get a mortgage on a property with land

If you’re planning to buy a property that comes with land – whether that’s a smallholding or a rural home – following these steps will help you secure the right mortgage.

Remortgaging a property with a large acreage

When you’re looking to remortgage a property with a large acreage, the key detail is whether the usage of your land has changed since you got your existing mortgage.

• If you currently have a residential mortgage and you do not use any of your land for commercial purposes, you will be able to remortgage with a new residential mortgage
• If you currently have a commercial mortgage or agricultural mortgage and the use of your land hasn’t changed, you can refinance your commercial mortgage
• If you currently have a residential mortgage and want to begin using your land for commercial purposes (or vice versa: you have a commercial mortgage and no longer use your land for commercial purposes) you’ll need to change your mortgage type.

In any of these cases, speaking to an expert broker can help you understand the process and speed up your application.

Get matched with a broker experienced in large acreage mortgages

Large acreage mortgages aren’t that common, so not all brokers will have experience with them. Luckily, some brokers we work with specialise in exactly these mortgages and know this corner of the market extremely well.

If you’d like to seek the advice of one of these brokers, we can refer you to them through our free broker-matching service for a no-obligation chat. Simply fill out your details in our online enquiry form or give us a call on 0808 189 2301.