Loan to buy some land

dgharris

Hi everyone, I am thinking of purchasing some land (2 acres) and the price is 15k. Now I don't have this type of money in the bank, so I am thinking of getting a long term loan (10 year) to pay for it. I cannot add the money onto my mortgage as it messes up the LTV.

I am looking for a loan that would allow early repayment and overpayment.

Any ideas? - platinum loans come up often in the price compare sites...anyone used these?

thanks

jonesMUFCforever

Many banks will not loan for this purpose on an unsecured basis.
Check with your own bank before applying although again most banks will restrict you to 7 years unsecured.

If this does not work for you then you might have to go for some kind of mortgage secured on the land.
What are your plans for it anyway (planning permission would for example make it more valuable long term)?

billymadbiker

Depends on you and your credit.
I took a 15k loan with hsbc a couple of years back, payments about 380p/m.
Totally unsecured and they never even asked what I wanted it for.

Try walking into your bank, telling them you want to borrow 15k and can pay back £x p/m and see what they say?

chalkie99

Only problem with that is the financial world is a different place than it was a couple of years ago.

dgharris

hi, thanks for the reply. The land is actually a forest, and I would use the wood to heat my home. So it is a long term thing. I want to keep payments down as I have a fairly large mortgage 1000 a month. I have a good credit score.
Seen some long term loans - problem is the interest you pay back is massive!
Wait and see!

jonesMUFCforever

Have you ever thought that even if you own the land the trees may not be yours?

You may have no right to chop any down although good management would dictate that you should be able to pick up any fallen branches etc.

Have you asked whether you can do this now - for free?

dgharris

no I have done the research - the trees come with the land, I would be able to chop down the tree (within certain limit per year). Don't think would be allowed to do this now.
thanks