Commercial mortgages for rural land require a 30-40% deposit
Unlike residential mortgages, commercial loans on rural land or agricultural properties typically require a heavy cash injection of 30-40%.
If you are purchasing a commercial rural property (like a farm, a retreat center, or agricultural land with outbuildings), be prepared for high deposit requirements.
Commercial lenders typically cap their Loan to Value (LTV) at 60-70%. This means you must have a minimum cash deposit of 30-40%, plus funds to cover commercial Stamp Duty (SDLT), arrangement fees, and specialized valuation reports.
For those lacking the full cash deposit, a common strategy is to use secondary security. If you own an unencumbered property elsewhere (e.g., your old city home), a lender can take a "second charge" over that property to provide the remaining 100% of the purchase price for the rural land.