Land Mortgage Calculator

A land mortgage is a loan secured on land rather than a finished home, used to buy a building plot, paddock, farmland or commercial site. Most standard home lenders will not lend on land alone, so land is usually financed by specialist lenders, self-build mortgages, bridging or commercial loans.

Lenders value land on its current use and planning, not on what it might become, and usually ask for a larger deposit than on a home. How land purchases are financed, and which routes suit different buyers, is explained on the can you get a mortgage on land page.

The calculator takes the land price, the deposit and the rate and term entered, works out the loan, then applies a standard capital-and-interest formula to estimate the monthly repayment, the total repaid and the total interest. Changing any input shows how the repayment moves, which helps when testing a purchase.

The defaults in each field are starting points to overwrite, not market figures. Fees such as arrangement, valuation and legal costs are not included, and nor is Stamp Duty Land Tax, so the full cost of a land purchase is higher than the loan repayments alone.

Short-term land loans, such as bridging, are often interest-only and repaid in one sum at the end, so their monthly cost differs from this repayment estimate. Self-build mortgages release money in stages, so repayments rise as more of the loan is drawn.

The cost of a land loan depends mainly on the loan-to-value, the land's planning and use, the term and the borrower's experience. Plots with full planning and good access are usually priced lower than bare land or land without planning, and short-term loans are usually priced higher than long-term mortgages.

Fees can change which offer costs least, so comparing offers on the total cost over the expected holding period gives a fairer view than the rate alone. What moves land loan pricing, and which fees to compare, is set out on the land mortgage rates page.