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Mortgage Advisor & Director
Can I get a mortgage for a property with acreage?
Buying a property with acreage is more a specialist requirement than buying a standard property, with many mainstream lenders limiting the amount of land they'll accept in an application. The number of lenders and mortgages available will depend on the acreage you're looking to buy. Most lenders are comfortable with a couple of acres; however, as the acreage increases, the number of suitable lenders reduces.
At Teito, we are a whole-of-market broker which means we have access to deals that are not accessible to the general public, including lenders for acreage mortgages. Get started now, and we'll help you to find your perfect mortgage.
What is the acreage limit for a conventional mortgage?
Highstreet lenders are generally comfortable for up to 2 acres and include the land in their valuation, with some accepting up to 10 acres. If there are outbuildings that could be used to generate an income, such as workshops or stables, this could complicate matters. Depending on the percentage of the property dedicated to residential and commercial use, lenders may tell you to apply for a commercial mortgage instead. As commercial mortgages are generally offered at higher rates and with a reduced Loan to Value (LTV), residential mortgages are typically preferable.
Loan to Value for large acreage properties
One of the reasons it is essential to engage an experienced broker when applying for an acreage mortgage is related to the amount of land included in the valuation.
While there are mainstream lenders who offer up to 10 acres, they may limit the amount of land they include in their valuation, which impacts on the LTV and your mortgage chances. At Teito, we are a whole of market broker, which means we work with all of the specialist lenders. Our expert advisors not only know the best lenders to approach and how to boost your chances of approval, but they also find the best rates possible.
Mortgaging a large acreage property
For property over ten acres, this is generally in the territory of specialist lenders. Some mainstream lenders will offer on properties above ten acres, on the basis that there is no commercial income. Many building societies are more comfortable than banks when it comes to lending on large acreage. Our team will be able to advise on the best lenders for you, depending on your situation.
Commercial use of large acreage properties
If you're looking to buy a large acreage property, you may be considering various commercial applications including:
- Equestrian and livery services
- Land rental
- Animal grazing
- Cattery or kennels
- AirBNB lettings
- Long term rental
- Outbuilding rental
How can I learn more?
We work with more than 100 lenders offering 20,000 mortgages, including specialist lenders who lend on large acreage property. Get started today, and we promise to make your mortgage journey as straightforward and stress-free as possible.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.
