Can You Get a Mortgage to Buy Land?

Yes, you can get a mortgage to buy land in the UK, but it's more complex than a standard mortgage. Land mortgages require 30-50% deposit and are offered by specialist lenders. Planning permission status is crucial - plots with permission are easier to finance. Self-build mortgages can fund both land purchase and construction. Agricultural and recreational land have fewer financing options.

Learn more about self-build mortgages in our detailed guide.

Learn more about development finance in our detailed guide.

Learn more about new build mortgages in our detailed guide.

Learn more about mortgage deposits in our detailed guide.

Can you get a mortgage to buy land?

Yes, but land mortgages are specialist products offered by fewer lenders than standard mortgages. The type of land matters - building plots with planning permission are easier to finance than agricultural or recreational land. Deposits are typically higher (30-50%) and rates are higher than residential mortgages.

What deposit do I need to buy land?

Land mortgages typically require 30-50% deposit, significantly higher than residential mortgages. Land with planning permission may require 30-40%, while land without planning could need 50% or more. Some lenders only offer land loans at 50% LTV maximum.

Is it better to buy land with or without planning permission?

Land with planning permission is easier to finance and valued higher by lenders. Without planning, you're taking a risk - permission might be refused, leaving you with land you can't develop. However, land without planning is cheaper, offering potential profit if you obtain permission.

Can I get a mortgage to buy land and build?

Yes, self-build mortgages are designed for this. They release funds in stages as construction progresses. You can buy land first with a land mortgage, then refinance to a self-build mortgage, or use a combined product that covers both from the start.

How do lenders value land?

Lenders value land based on current market value, not potential value after development. Planning permission status is crucial - land with permission is worth more. Location, access, utilities availability, and any restrictive covenants affect value. Specialist valuers assess building plots.

What types of land can I get a mortgage for?

Building plots with planning permission are most financeable. Agricultural land, woodland, and amenity land have fewer lender options. Commercial development land requires specialist finance. Lenders assess the land type, planning status, and your intended use.

Quick Answer

How Do Land Mortgages Work?

Last reviewed: December 2025

Reviewed by Jay Sabine – CeMAP Qualified – 29 years experience

Specialist mortgages for buying land. 30-50% deposit required. Planning permission makes financing easier. Self-build mortgages cover land and construction. Fewer lenders than residential.

Land mortgages are specialist products for purchasing land separately from an existing property. They're more complex than standard mortgages because land alone doesn't provide security like a habitable home. Lenders require larger deposits (30-50%), charge higher rates, and carefully assess the land type and planning status. Building plots with planning permission are the easiest to finance. If you plan to build, a self-build mortgage can cover both land purchase and construction costs, releasing funds in stages as building progresses.

Your property may be repossessed if you do not keep up repayments on your mortgage. Land purchases involve additional risks including planning permission uncertainty.

Key Points

130-50% deposit typically required
2Planning permission crucial for financing
3Specialist lenders only (not high street)
4Higher rates than residential mortgages
5Self-build mortgages for land + construction
6Land valued on current worth, not potential

Eligibility Criteria

Minimum 30% deposit (50% for land without planning)
Clear intended use for the land
Planning permission (or realistic prospect)
Good credit history
Proof of income and affordability
Experience helpful for development projects

Typical Timeframe

Land mortgage applications take 4-8 weeks. Planning permission applications typically take 8-13 weeks. Self-build projects can take 12-24 months from land purchase to completion. Allow extra time for specialist valuations.

Next Steps

1Identify land and check planning status
2Research local planning policies
3Calculate total project costs (land + build)
4Save larger deposit (30-50%)
5Speak to specialist land/self-build broker

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How Do Land Mortgages Work?

Key Points

Eligibility Criteria

Typical Timeframe

Next Steps

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