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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: 4th December 2020*

In this piece, you’ll learn about mortgages for woodland – what they are, how they work, and what you need to get one.

Trying to get a mortgage on woodland yourself? Get in touch! One of the experts we work with may be able to help you find the perfect deal.

Here’s what you’ll learn in this article:

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Woodland mortgages: what are they and how do they work?

A woodland mortgage is, as you may have guessed, a kind of mortgage for buying woodland.

Due to lower demand and very strict rules on what you can do with forested areas, this is a niche area of mortgage finance, and the lenders available to you will largely depend on what you want to buy the land for.

If you really want to buy a woodland, a mortgage may be a good way to go about it – though it’s not uncommon for woodland purchases to be paid in cash.

Can I get a mortgage for woodland?

Quite possibly. There are a few options open to you:

  1. Use a commercial or agricultural mortgage: If you want to buy a piece of woodland with the permissions for commercial use (such as forestry), you could use a commercial agricultural mortgage. However, this kind of mortgage would not be suitable for a smaller piece of forest you intend to use purely for recreational or conservation purposes.
  2. Buy woodland through your pension plan Some self-invested pension schemes (such as SIPPs) allow you to purchase land ( including woodland) using your pension. You may also be able to split the costs of this with others, by buying through a scheme such as a Group SIPP.  Again, there usually has to be a commercial reason for investing through your pension, so this may not be suited to a smaller, recreational plot. The taxation rules around purchasing land through your SIPP can be somewhat complex, and so we’d recommend you speak to an expert before going ahead. If you still have questions, get in touch. Call us on 0808 189 2301 or make an enquiry and we’ll put you in touch with one of the expert advisors we work with.
  3. Remortgage another property Another way to borrow would be to use another property, such as your home, as collateral. Of course, the standard caveat applies here – using your home as collateral against a woodland mortgage is certainly a riskier option, and not one to be taken lightly. If you have a property you can remortgage, this may be the more straightforward option, though you may need to move to another lender to make the deal work. Get in touch if you want some friendly, expert advice on this from one of the fantastic brokers we work with.

Who lends on woodland?

This really depends on what you want to do with the woodland…

  • If you’re buying for personal or conservational use – If you’re purchasing the woodland purely for personal or conservation purposes, you may need to go to a smaller, niche lender. This is a small lending space, and some of the lenders aren’t regulated by the FCA. This means that there might not be regulatory recourse if something goes wrong later. Interest rates can also be higher, though if you buy through an expert broker (such as one of the professionals we work with), you may be able to find a better deal. You’ll also get the assurance that FCA protection can provide.
  • If you’re buying for agricultural or commercial use –If you have the rights to agricultural or commercial use of the land, you’ll probably be able to access a larger lending pool – with many of agricultural specialists offering commercial rates and terms on mortgages.

Should I used a woodland mortgage calculator?

Well, you might struggle to find a specific calculator that’s tailored to this niche area of borrowing, but you can get accurate and bespoke calculations by making an enquiry with us.

Any online mortgage calculator tool will only give you a rough idea of the amount you can borrow, but one of the specialist brokers we work with can provide you with tailored figures, whether you’re looking to buy woodland for commercial purposes or otherwise.

They can also pair you up with the lender whose calculator is most likely to return favourable results on woodland purchases for a customer with your needs and circumstances.

Talk to a UK woodland mortgages expert today

If you have questions about getting a mortgage to buy woodland and want to speak to an expert for the right advice, call Online Mortgage Advisor today on 0808 189 2301 or make an enquiry.

We’ll introduce you to one of the specialist brokers we work with. The right advisor will know the lenders to approach for organising a mortgage for the woodland property you want to buy. They’ll be happy to answer any questions you might have and clear the way through the application process.

Updated: 4th December 2020
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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 information 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.

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