Getting Mortgage on House with 12 Acres of Land

[Paul0568]

My brother has just had his mortgage application rejected by Santander because they don't lend on properties with over 10 acres of land. Is this a common restriction or should he simply look elsewhere?

He is looking for an interest only mortgage with approximately 50% LTV.

Any suggestions on how he can proceed? One option may be to ask the vendor to sell him 2 acres for cash as a separate transaction.

He has a mortgage advisor, but I'm not sure how creative he is so thought I would ask here.

Thanks, Paul

[Sarnie]

Paul0568 said:

My brother has just had his mortgage application rejected by Santander because they don't lend on properties with over 10 acres of land. Is this a common restriction or should he simply look elsewhere?

He is looking for an interest only mortgage with approximately 50% LTV.

Any suggestions on how he can proceed? One option may be to ask the vendor to sell him 2 acres for cash as a separate transaction.

He has a mortgage advisor, but I'm not sure how creative he is so thought I would ask here.

Thanks, Paul

The restriction will be more the Interest Only requirement than the size of the land!!

PS: It's very amateurish that the advisor/broker didn't clarify the size of the land criteria beforehand, he could have found that out with a quick call at the very outset.............

[sideways sid]

Just a guess, but it is possible that the lender classifies more than 10 acres as a farm, which they will lend on, on commercial terms rather than a normal residential mortgage?

[Paul0568]

Thanks for the replies. The restriction is definitely related to amount of land and not the interest only element. (He already has an interest only mortgage with Santander on the property he is selling).

The mortgage advisor has now suggested Skipton Building Society. They are offering a good deal, but are not as flexible on interest only.

Any ideas?

[Magic919]

You could contact Sarnie.

[williaa68]

Agree - the bloke has to eat. If your brother's other adviser isnt competent he should bin him and instruct someone who is....

[williaa68]

Agree - the bloke has to eat. If your brother's other adviser isnt competent he should bin him and instruct someone who is....