Why land loans need bigger deposits
Land is harder to sell than a home and produces no income on its own, so lenders usually lend a smaller share of its value. Land with planning permission is generally easier to borrow against.
Worked example
A £150,000 plot at a 60% limit could support a loan of about £90,000, leaving a £60,000 deposit.
Before you buy
Check access, utilities and planning before committing.
Land lenders weigh planning status, access and your experience as well, so the offer may be lower than this limit.
How the result is worked out
The extra you could borrow is the land value multiplied by the maximum loan-to-value you enter, minus any borrowing already secured on it. Your equity is the value minus that existing borrowing.
The default 60% limit is only an example; land lenders set their own limits.
Inputs for the land loan eligibility calculator
Land value
The price or value of the land.
Existing borrowing secured on it
Any loans already secured on it.
Maximum loan-to-value
The lender's maximum for land, usually lower than for homes.
CALCULATOR QUESTIONS
Land loan eligibility calculator questions
How much can I borrow to buy land?
Usually a smaller share of the value than for a home. Enter the lender's limit above.
Does planning permission help?
Yes. It usually makes land easier to finance.
What if I want to build on it?
Look at self-build mortgages, which release money in stages.
Is this a guarantee?
No. The lender decides.