Fund your next big development project with affordable & flexible land mortgage offers from UK-wide lenders. Loan term up to 5 years. Land mortgages starting from £100,000.

Land Mortgage

Affordable Land Mortgages for UK Businesses and Developers

In most market conditions, developing a property from the ground up is a profitable endeavour. However, a number of factors can skew the delicate balance of economics against the developer. The most common among these is the premium price that lenders put on funding, or worse yet, not having adequate funding. Development Finance solutions we offer aim to help developers and borrowing businesses avoid such scenarios.

A substantial share of the funding that a property development project requires goes into acquiring the site. Depending upon the type of the project and the site itself, this sum can run from thousands of pounds to millions. An affordable land mortgage customised around your requirements is the best way to cover this component of the overall project cost.

What is a Land Mortgage?

A land mortgage, in the simplest of terms, is a property development loan aimed at acquiring land in order to develop it. Unlike other types of Development Finance, land mortgages aren’t typically disbursed on an ‘as and when needed’ basis. The lender disburses the loan amount directly to the property seller so as to transfer the ownership. This also means that the interest due on a land mortgage accrues in full right from the word go.

How is a Land Mortgage Different from a Commercial Property Mortgage?

In principle, as much as anything else, land mortgages aren’t too different from regular property mortgages. However, the most telling difference is in the way they are structured and the timeframe over which they conclude.

Most property mortgages are designed to conclude over a long term. This term can run into decades in some cases. On the contrary, a land mortgage is typically termed over 6-60 months. Another difference between these two financing products lies in their utility. Property mortgages are meant to help the borrower ‘own’ the property. A land development loan, on the other hand, helps the borrower acquire, develop and sell for profit the land in question.

Developers and businesses need to note that land mortgages usually take up the largest share of overall project cost. Therefore, most lenders prefer to have the first legal charge on their money.

Features of Land Mortgages We Broker

  • Flexible loan term (6 months to 5 years)
  • Land mortgages starting from £100,000 with no upper cap
  • High LTC land mortgages (up to 80% of the market value)
  • Market leading interest rates
  • Fixed as well as tracker interest rates available
  • Monthly and quarterly repayment options
  • No exorbitant fees

Land Mortgages Made Easy and Accessible

Approaching dozens of lenders for a land mortgage only to see no reasonable offers in return can be disheartening. That should not, however, keep your project from taking off. Commercial Finance Network, with an impressive track record of broking hundreds of land mortgages, can help you find a land mortgage that meets your exact requirements. We collate Development Finance offers from leading lenders across the UK so that you can choose a land mortgage quote that best suits your project.

A fully customised land mortgage is just a call away – Get in touch with us to speak to one of our Development Finance experts today!