Mortgage to buy land

Powapa

Hi all, does anyone have a recommendation on who to use or how to go about getting a mortgage to buy land? Not to build a house on it’s just an agricultural 6acre plot.

MWT

You need an agricultural mortgage specialist, Google will find a few of these around, but it is a specialist area so not likely to be within the normal scope of the brokers on here...

chilswelluk

muhsarim said:

You should get a recommendation from a mortgage. I think you can get a mortgage from bank for agricultural land.

I have also looked at this, but all the lenders I can find only provide mortgages for agricultural land if you can secure them against a property that you own.  Even if you have 50% in cash towards the price of agricultural land, it's still no good unless you can secure any loan against a property.  Are there any options if you are not currently a property owner but want to buy agricultural land?  

[Deleted User]

High street lenders tend to do residential mortgages only. You will need a specialist Agri lender,  I dont do them myself and I doubt any other broker on here does either.  There is a company called AMC that comes up in discussions regularly.   Never used them so its not a recommendation but might be a good place to start

https://www.amconline.co.uk/

MWT

chilswelluk said:

 Are there any options if you are not currently a property owner but want to buy agricultural land?  

Are you already a farmer?

You are going to have to show that you have a viable business with a proven track-record and a credible plan to exploit the land profitably, are you able to do that?

chilswelluk

MWT said:
Are you already a farmer?

You are going to have to show that you have a viable business with a proven track-record and a credible plan to exploit the land profitably, are you able to do that?

Even if you have a credible plan to exploit the land profitably, I don't think that negates the need to secure the land against a property.  All the agricultural lenders I have reviewed require you to secure the land against a property.  If you are not an existing property owner you are stuffed, they won't even let you continue with your application.  If there are exemptions I would very much like to hear.

MWT

chilswelluk said:

Even if you have a credible plan to exploit the land profitably, I don't think that negates the need to secure the land against a property. 

To the best of my knowledge it doesn't, what I was saying is that even if you have property to offer as security (... and that can include other agricultural land as part of the security) you are going to be evaluated as a business, so if you are trying to get started in farming this probably isn't the best way to go. Starting with a land purchase that requires finance if you have nothing else to offer as security and no existing agricultural business is going to be difficult...