Land — pricing factors (UK)
What lenders weigh when pricing land cases — not live quotes. Use our calculators and speak to an FCA-authorised broker for firm-specific numbers.
Mortgage118 does not publish indicative rate bands. Lender pricing changes daily and depends on your profile.
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What lenders look at
These factors shape whether a land case is accepted and how it is priced. They are not a quote.
- Strong financial position and credit history
- Experience in land development or investment
- Adequate deposit and reserves
- Clear development strategy
- Professional team in place
- Suitable land type for intended use
For indicative numbers, use our mortgage calculators and compare brokers who specialise in land.
What moves your rate up or down
These are the strongest factors lenders weigh when setting pricing.
- Flexible lending criteria for land acquisition
- Specialist lenders with land finance expertise
- Higher deposit requirements due to land risk
- Planning permission considerations
- Development potential assessment
Fee breakdown
Common charges to plan for alongside the headline rate.
Arrangement Fee
Commercial facility fee
1% - 2%
of loan amount
Valuation Fee
Commercial property valuation
£1,500 - £5,000
specialist surveyor
Legal Fees
Commercial conveyancing
£2,000 - £5,000
plus due diligence
Broker Fee
Commercial arrangement
0.5% - 1.5%
on completion
Rate FAQs
Quick answers to common pricing questions.
Are land mortgage rates higher than standard rates?+
Yes, land mortgage rates are typically 2-3% higher than standard rates due to the increased risk and complexity. Rates may vary based on the land type, planning status, and your experience.
Can I get a land mortgage with adverse credit?+
Some specialist lenders may consider land mortgages for borrowers with minor credit issues, though the criteria may be stricter. You'll typically need a larger deposit and may face higher rates.
Can I get a land mortgage for a property I plan to develop?+
Yes, land mortgages are commonly used for development projects, though you'll need to demonstrate that you have the expertise and resources to complete the development successfully.
What are the ongoing costs of land ownership?+
Ongoing costs include mortgage payments, insurance, maintenance, security, and professional fees. Budget for these costs while the land is held, especially if development is delayed.
Can I use a limited company for land mortgages?+
Yes, many lenders offer land mortgages to limited companies, which can offer tax advantages. However, the criteria may be stricter, and you'll need to demonstrate the company's experience and financial strength.
Can I get a land mortgage for a property in a different location?+
Yes, though lenders may have preferences for certain locations or land types. You'll need to demonstrate that the land is suitable for your intended use and that you can manage it effectively.