Woodland Mortgages

Thinking of buying a piece of woodland? Here’s what you need to know about getting a mortgage and how the finance is calculated.

Get Started

Ask Us A Question

We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects.

Ask us a question and we'll get the best expert to help.

Feefo 5 Stars
1 of 3
£
£
£
2 of 3
3 of 3 Send!

No impact on credit score

4.8 out of 5 stars across Trustpilot, Feefo and Google! Our customers love Online Mortgage Advisor

Pete Mugleston

Author: Pete Mugleston

Mortgage Advisor, MD

Jon Nixon

Reviewer: Jon Nixon

Director of Distribution

Updated: December 4, 2023

How we reviewed this article:

Our experts continuously monitor changes in the financial space and work closely with qualified mortgage advisors for factual verification.

August 17, 2022

Are you based in the UK and looking to buy a plot of land made up of woodland or forest? Before going ahead with your plans, it’s worth having a solid understanding of how a mortgage for this type of property works, and what goes into the finance calculations.

This guide covers everything you need to know about buying woodland areas with a mortgage. You’ll also find out about what sort of rates to expect, and where to get the expert support you’ll need.

Keep on reading for all the details or click on a link below to jump straight to a section…

Can you get a mortgage to buy a woodland?

Yes, this is possible but it will be a slightly different process. There are usually few opportunities to buy forests or woodlands in the UK, so it’s not something most lenders are used to offering mortgages on. For the limited number of niche lenders able to provide finance under these circumstances, your reasons for buying the land will be particularly important.

Due to the unique nature of this type of land, the calculations for the loan will be made up of elements that wouldn’t normally apply. A standard mortgage isn’t your only path to ownership either, some other common strategies for buying woodlands include:

Maximise your chance of approval with a broker

Get Started

Ask Us A Question

We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects.

Ask us a question and we'll get the best expert to help.



Feefo 5 Stars
1 of 3
£
£
£
2 of 3
3 of 3 Send!

How finance for buying woodlands is calculated

This will largely be based on the size of the land and what your plans are. Typically, a smaller acreage of woodland, perhaps for conservation purposes, will be cheaper to buy. So this situation would potentially open up more financing options for you.

However, if your goal is to start a business or to build on it, you might need a bigger chunk of land. This could then require an agricultural or commercial mortgage, which involves its own specific pricing for finance and is calculated on a case-by-case basis.

Using a mortgage calculator

Due to these mortgages being bespoke and tailored to your plans, using a standard mortgage calculator for woodlands isn’t going to be much use. You’d likely get a very rough idea of the costs and payments, but the final figures will probably end up being quite different.

There may be loan-to-value (LTV) caps of around 70% in place for some of these mortgages, meaning you’d need a 30% deposit (either based upon the purchase price or current value). How much you can borrow to buy the land will largely depend on the income multiple used by lenders. To show you what this could look like, here’s a few examples scenarios:

Income Amount Income Multiple
3x salary 4x salary 5x salary
£20,000 £60,000 £100,000 £100,000
£30,000 £90,000 £120,000 £150,000
£40,000 £120,000 £160,000 £200,000
£50,000 £150,000 £200,000 £250,000

We're so confident in our service, we guarantee it.

We know it's important for you to have complete confidence in our service, and trust that you're getting the best chance of mortgage approval at the best available rate. We guarantee to get your mortgage approved where others can't - or we'll give you £100*

Happy approved couple

How to get a mortgage for woodlands or a forest

The exact process will depend on the exact plot of land you’re hoping to buy, and what your goals are. But, there are some universal steps that will help make sure you get the right mortgage and structure the finance in the best way possible:

Step one: gather your personal information and plot details

Like with any mortgage, you’ll need to have all your personal details to hand. This will include photo ID, proof of address, bank statements, and information relating to your income (including whether you’re an employee or self-employed).

It’s also worth putting together details of your plans for the woodland or forest you’re looking to buy. If you have a particular plot in mind, make sure you’ve done some research and have a basic idea about the costs. Or, if you want to set up a business on the land, create a clear business plan that lays out your goals and projections.

Step two: discuss your plans with an expert

Once you’ve got all your relevant pieces of information in one place, the next step is to discuss your options with a skilled advisor. By speaking with an expert broker at this stage, they can assess your plans and then instruct you on any areas needing clarity or improvement.

This means they can make sure you avoid any unnecessary rejections or marks on your credit file by ensuring you deal with the right lenders. Some lenders won’t be willing to offer mortgages for woodlands, and those that do will be particular about what they will accept. Using a specialist broker means speaking with the right lender from day one.

Step three: begin your application

Once your expert mortgage advisor has reviewed your plans and identified the most suitable lender to approach, they will help manage your application, whether it’s residential or commercial finance. The advantage of having an expert in your corner means they can help look after things from start to finish.

So, once your application has been submitted to an appropriate lender, your broker will be able to keep you updated throughout the process. This will make sure that you’re able to concentrate on your upcoming property or business plans for the woodlands whilst they handle the finer details surrounding the mortgage.

Finding a knowledgeable and experienced mortgage broker can be difficult, which is why we offer a free, broker-matching service. The brokers we work with are experts in specialised areas of land ownership like this. Just make an enquiry and we’ll introduce you to one of them for free.

Access your credit report through a free trial

Credit rating illustration
Get my FREE report

Examples of lenders and interest rates

Typical interest rates for this type of borrowing can be anywhere between 1.5%-2% above the Bank of England base rate. However, your personal circumstances, the specific area of land you’re looking to buy, and how you plan to use the land will all impact the rates and terms available.

Most high-street lenders and banks won’t offer products, but here are some examples of lenders willing to discuss secure land loans and woodland mortgages:

  • Ecology Building Society
  • Shawbrook Bank
  • Norton Finance

The exact mortgage structure you need will be specific to your plans and personal situation. So, if you want to see the full range of available options when buying woodland, your best option is to have a discussion with a specialist broker.

Refinancing a woodland mortgage

Remortgaging onto a better deal with your existing lender can be useful because they should have all the relevant details about the land. If you plan to refinance a woodland or forest you already own, keep in mind that most mortgages will have early repayment fees. So, make sure you check this before you make any changes.

However, it may be the case you want to do something different with the woodland. Or, there are now some new lending options that were not available when you originally took out a loan. An advisor who specialises in woodland mortgages can explain the current state of the market and direct you on whether it’s better to stay put or switch to another lender.

Speak with a woodland mortgage specialist

This particular type of land ownership can be quite complex. Finding correct and reliable mortgage advice is difficult, due to it being such a niche area.

Luckily for you, we offer a free-broker matching service. This means we can quickly assess your needs and the land you’re planning to buy. Then, we’ll pair you up with a specialist broker who has plenty of success securing mortgages for woodlands and forests.

Just call 0808 189 2310 or make an enquiry. We’ll set up a free, no obligation introductory call with your ideal broker today.

Maximise your chance of approval with a broker

Get Started

Ask Us A Question

We know everyone's circumstances are different, that's why we work with mortgage brokers who are experts in all different mortgage subjects.

Ask us a question and we'll get the best expert to help.



Feefo 5 Stars
1 of 3
£
£
£
2 of 3
3 of 3 Send!

FAQs

It can be, but it will depend on the piece of land in question and how you plan to generate an investment return from it.

Most of the time you won’t be able to build on woodlands owned with a residential mortgage. But, you are usually allowed to build a small cabin for occasional use, or for the purpose of maintaining the land. However, if you obtain a commercial or agricultural mortgage from a specialist lender, more extensive building is possible.

It will depend on where the land is based. On average, you can expect to pay around £10,000 per acre (0.4 hectares). But, it’s also important to factor in any other additional costs for the purchase such as legal, admin, and financing fees.

Ask us a question

We can help!

We know everyone's circumstances are different, so if you have a specific question about getting a mortgage for woodlands for then get in touch.

Ask us a question and we'll get the best expert to help.

Our Brokers

Get in touch today

Make an enquiry and we'll arrange for an experienced mortgage broker we work with to contact you straight away.

1 of 3
£
£
£
2 of 3
3 of 3 Send!

About the author

Pete, an expert in all things mortgages, cut his teeth right in the middle of the credit crunch. With plenty of people needing help and few mortgage providers lending, Pete found great success in going the extra mile to find mortgages for people whom many others considered lost causes. The experience he gained, coupled with his love of helping people reach their goals, led him to establish Online Mortgage Advisor, with one clear vision – to help as many customers as possible get the right advice, regardless of need or background.

Pete’s presence in the industry as the ‘go-to’ for specialist finance continues to grow, and he is regularly cited in and writes for both local and national press, as well as trade publications, with a regular column in Mortgage Introducer and being the exclusive mortgage expert for LOVEMoney. Pete also writes for Online Mortgage Advisor of course!

Read more about Pete

Pete Mugleston

Mortgage Advisor, MD

Maximise your chances of approval, whatever your situation - Find your perfect mortgage broker