Can You Get a Mortgage on Land in the UK?

If you are considering buying land, you may be asking whether you can get a mortgage on land in the UK. The answer depends on the type of land, what you intend to do with it, its planning position and the lender’s criteria.

Land finance can be different from a standard residential mortgage. A lender will want to understand what the land is, how it will be used and what security is available for the borrowing.

Why is buying land different from buying a house?

A conventional residential mortgage is normally based around a residential property that provides security for the lender.

Land can be much more varied.

You could be buying:

• A building plot with planning permission
• A parcel of agricultural land
• Pasture or grazing land
• Equestrian land
• A smallholding
• Woodland
• Amenity or leisure land
• Land intended for commercial use
• Land with potential for future development

Each of these can present a different lending proposition.

What type of land finance might be available?

The appropriate finance depends on the nature of the purchase and your intended use.

For example, a buyer purchasing a residential plot with planning permission may have different finance options from someone purchasing agricultural land for farming or grazing.

Similarly, someone buying land as part of a development project may need development or specialist property finance rather than a standard residential mortgage.

Does planning permission affect land finance?

Planning can be an important factor when a lender assesses land.

For example, land with planning permission for a specific development may have a different value and lending proposition from agricultural land without permission for development.

You should establish:

• The current lawful use of the land
• Whether planning permission exists
• What the planning permission allows
• Whether there are planning conditions
• Whether the intended future use requires planning permission
• Whether previous planning applications have been made

Planning rules can also apply when changing agricultural land to another use. GOV.UK notes that planning permission is generally required where agricultural land or buildings are being changed to another use, subject to applicable rules and permitted development rights. :contentReference[oaicite:0]{index=0}

Can you get a mortgage on a building plot?

Potentially, yes, but the finance available will depend on the particular plot and your plans.

A building plot with full planning permission can present a different lending proposition from land where planning permission has not yet been obtained.

If your intention is to build a house, the financing may also need to take account of the construction phase rather than simply the initial land purchase.

This is one situation where it is particularly important to discuss the proposed purchase with a suitable adviser before making an offer.

Can you get finance to buy agricultural land?

Agricultural land can sometimes be financed, but the appropriate funding will depend on factors such as how the land will be used, the buyer’s circumstances and the nature of the property.

A buyer purchasing land for agricultural purposes may have different requirements from someone purchasing agricultural land because they believe it has future development potential.

If development potential is part of your reason for buying, do not assume that a lender will value the land on the basis of planning permission that does not yet exist.

How much deposit do you need to buy land?

There is no single deposit percentage that applies to every land purchase.

The amount you need to contribute can depend on the lender, the type and value of the land, the proposed use, your financial circumstances and the strength of the security being offered.

This is different from assuming that the standard deposit expectations for an ordinary residential mortgage will automatically apply to land.

Before searching seriously, it is sensible to establish your available funds and speak to an appropriate adviser about how much you may be able to borrow.

What will a lender look at?

As with other forms of borrowing, lenders will assess affordability and the circumstances of the borrower.

MoneyHelper explains that mortgage lenders consider income, outgoings and other financial commitments when assessing affordability, alongside factors such as employment and credit history. :contentReference[oaicite:1]{index=1}

For a land purchase, the property itself is also important.

A lender may consider matters such as:

• The type of land
• The property’s location
• Its market value
• Planning status
• Access
• Existing use
• Potential future use
• The condition of any buildings
• How readily the property could be sold if necessary

The exact assessment will vary between lenders and types of finance.

Will the lender value the land?

A lender will generally need to be satisfied that the property offered as security provides sufficient value for the proposed borrowing.

This is particularly important with land because two apparently similar parcels can have very different values depending on their planning position, location, access and permitted use.

For example, a parcel of land with established development permission may have a very different market value from a similar-sized parcel that can only lawfully be used for agriculture.

What documents might you need?

The exact requirements depend on the lender and the type of finance, but you should be prepared to provide information about both yourself and the land.

This could include:

• Proof of identity
• Evidence of income
• Bank statements
• Evidence of your deposit or other funds
• Details of existing borrowing
• Property or land details
• Planning information
• Details of the intended use
• Business information where the purchase is commercial

MoneyHelper notes that mortgage applicants may need to provide documents such as payslips, bank statements, proof of deposit and, for self-employed applicants, business accounts and tax information. :contentReference[oaicite:2]{index=2}

What if you want to buy land and build on it?

Buying land with the intention of constructing a property is different from simply buying land as an investment or for agricultural use.

You may need to consider the entire project:

• Land purchase price
• Deposit or available capital
• Planning and professional fees
• Construction costs
• Utility connections
• Access and ground works
• Contingency funds
• Finance costs during construction

The appropriate funding structure should therefore be established before you commit to purchasing the land.

What if the land has no planning permission?

You may still be able to finance certain types of land without planning permission, but the available finance and lender criteria can be different.

If you are buying land because you hope to obtain planning permission in the future, that potential should be treated separately from an existing planning consent.

Planning permission is not guaranteed simply because land appears suitable for development.

If planning potential is central to your purchase decision, consider taking professional planning advice before committing yourself financially.

Can you use your existing home to help buy land?

Depending on your circumstances, existing property equity may form part of the funding for a land purchase.

However, using your home or another property as security can increase the financial risk of the transaction. You should obtain appropriate regulated financial advice before deciding whether this is suitable for you.

What costs should you allow for?

Do not budget solely for the land purchase price.

You may also need to allow for:

• Legal and conveyancing costs
• Valuation fees
• Survey costs
• Planning advice
• Finance arrangement fees
• Access or infrastructure works
• Utility connections
• Land preparation
• Taxes that apply to the transaction

MoneyHelper also recommends considering mortgage fees, valuation and survey costs, legal costs and taxes when budgeting for a property purchase. :contentReference[oaicite:3]{index=3}

Get finance advice before making an offer

If you know you will need borrowing, it can be useful to establish your position before you start seriously negotiating on land.

MoneyHelper recommends speaking to a lender or mortgage adviser to understand how much you may be able to borrow. It also advises using a regulated mortgage adviser where mortgage advice is required. :contentReference[oaicite:4]{index=4}

For unusual land purchases, you may need an adviser who understands the particular type of property and finance involved.

Find land that matches your budget and requirements

Once you understand your likely budget, you can focus your search on land that fits your requirements rather than simply looking at everything available.

You can browse land for sale across the UK, including building plots, development land, agricultural land, smallholdings and other types of land.

If you are looking for something specific, you can also tell Your Landstore what land you’re looking for.

Give us your preferred location, land type and requirements so your search can be considered when suitable land comes to market.