Financing Land Purchase Uk

Learn more about payment relief options and how we re responding to the coronavirus covid 19.

Financing land purchase uk.

Buying raw land can be significantly cheaper than buying already improved land but it will be harder to find a lender willing to finance your purchase. Finance your next land purchase with a loan from lightstream. Buying land allows you to build the home of your dreams or preserve a slice of nature. Although you might assume that land is a safe investment after all they re not making any more of it lenders see land loans as risky.

However land can be expensive so you may need a loan to fund your land purchase. Financing a land purchase may be more complicated than the traditional home mortgage process but you shouldn t feel discouraged. While using a farm credit institution is more cost effective than owner financing or leasing to buy it is more costly than purchasing in cash. However it may be more difficult to convince the lender to approve your land loan than it would if you were applying for a regular mortgage.

As with any other debt you take on you want to get the lowest possible interest rate and the most affordable monthly. Low fixed rates for those with good credit and loan amounts up to 100 000. It can be difficult for some buyers to come up with. Farm credit institutions typically seek at least 20 percent down payment for a land purchase.

If you do find a lender willing to work with you on your purchase of a raw parcel you may find that your loan will fall under the umbrella of commercial lending in which case you should. As with any other loan you will need to apply with a lender if you want a personal loan to buy land.