Residential mortgage for property with land
Here are a few of the common things we hear related to getting a residential mortgage for property with land.
- Your property is not residential or commercial – but it’s still good security
- Your usual broker or lender says there is too much land with your intended purchase.
- Your usual broker or lender says that this application cannot be residential because there are commercial buildings with it.
- A commercial lender says that all your income must come from the property and therefore your purchase is unviable commercially.
At Farm and Country Finance, we hear this a lot…
It usually starts with a customer who wants to buy a small farm with some buildings and land. They try to port their existing mortgage only to be told that their intended purchase is not residential. It often happens when a valuer has been out. Often our enquirers are shocked and are even more so when a commercial lender says that all the income must come from the property and therefore it is not viable. Often they tell us that they’ve been with the same lender for years and never missed a beat. As they have found, their loyalty means nothing.
So there we have it. Good customers with good income or good plans and good security faced with a tick box mentality. What is it that some of these lenders don’t get about land. Land is in short supply and is often the best security – we love it. Moreover, there is a dream that could lie in ruins, but most lenders aren’t going to worry about that. But we do.
For years, Farm and Country Finance has had relationships with lenders that will consider applications for farm finance or agricultural mortgages where the property is not considered residential by some lenders or commercial by others.
This includes mortgages for properties with agricultural restrictions
Take a look at our case studies and testimonials from other folk, where dreams became the reality.