Mortgages for Land with Planning Permission
Best Mortgage Rates
Mortgages for Land with Planning Permission
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- Lloyds Bank
- 4.07% Initial
- 5 year fixed
- 6.6% APRC
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Cashback Max £250Free LegalsFree Valuation
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- 4.10% Initial
- 5 year fixed
- 6% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.14% Initial
- 5 year fixed
- 6.3% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.17% Initial
- 5 year fixed
- 6.4% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.17% Initial
- 2 year fixed
- 6.7% APRC
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Cashback £0Free LegalsFree Valuation
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- Halifax
- 4.18% Initial
- 5 year fixed
- 6.7% APRC
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Cashback Max £250Free LegalsFree Valuation
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- Halifax
- 4.18% Initial
- 5 year fixed
- 6.7% APRC
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Cashback Max £250Free LegalsFree Valuation
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- 4.19% Initial
- 5 year fixed
- 6% APRC
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Cashback Max £1,250Free LegalsFree Valuation
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- 4.19% Initial
- 2 year fixed
- 8% APRC
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Cashback £0Free LegalsFree Valuation
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- 4.20% Initial
- 5 year fixed
- 6% APRC
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Cashback £0Free LegalsFree Valuation
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Mortgages for Land with Planning Permission
Mortgages for land with planning permission
The right planning permission will likely be a key consideration when consolidating your building plans when buying a plot of land.
Furthermore, mortgage lenders are much less likely to lend money to buy land that does not already have the proper planning permission. Many plots of land are sold with planning permission already in place.
By seeking expert advice, you should be able to locate the mortgage deal that you need for your land purchase, even if standard residential mortgage lenders do not offer mortgage deals for land with planning permission.
Is there a difference between a full planning permission and an outline planning permission?
If you buy a plot of land with full planning permission, the local authority will already have detailed plans for its development. The public register of your local council contains these details - and it's very important to familiarise yourself with what building work will be permitted before you approach potential mortgage lenders.
If your chosen plot of land lacks full planning permission, you may still be able to get a mortgage deal if it has outline planning permission.
Although outline planning permission is cheaper than standard planning permission, it does not guarantee that you will be able to build as you choose, but it is a good indication of the kind of planning permission you will likely be able to obtain for the land should you decide to apply for full planning permission in the future.
No matter what type of planning permission you have, it will expire after three years, and you will need to reapply. Thus, knowing how long you have to begin building on the land you intend to purchase is essential.
Can I obtain a mortgage to purchase land with planning permission and fund my self-build project?
For people considering buying land with planning permission for a self-build project, some mortgage lenders offer special self-build mortgage deals. Based on the estimated final value of the house, you may be able to borrow up to 95% of the land purchase and build costs. For the project's duration, the funds will be released in stages.
This type of financing benefits both lenders and borrowers. For borrowers, it means they can get the money they need upfront to purchase the land they want.
After the initial foundations are laid, the remaining cash will be released in stages to cover each stage of the building project. For example, you may receive a lump sum to cover the foundations, followed by a further sum for structural development and finally the remainder of the mortgage to finance the property's habitability.
This type of mortgage deal gives the mortgage lender a sense of security and may allow them to offer a larger mortgage amount due to the staged cash flow release.
To investigate your finance options for land, call our broker team or fill in our call back form - speak to our independent mortgage broker team who will be able to offer impartial advice or you can call us on 0117 403 3464