There are many factors to consider when getting financing for land. This article will discuss how you can go about getting the money you need and tips on what lenders might be looking for. Whether you’re a first-time buyer or an experienced investor, you will find your way through this process with ease.
Find Lenders
You first need to find where to get the money from. If you look around for loans to buy land in the UK, you will realize there are different options available. These lenders will be able to help you get the money and give advice on getting a loan. If it’s your first time getting financing for land in this way, each lender will require different paperwork from you.
Once you meet with them, they will discuss terms and conditions with you, and let you know how much they can lend to you. You’ll need to compromise on getting the most you can afford, and also getting a term that suits your plans.
What Is The Criteria Of The Lender?
There are multiple factors involved when getting a loan. The criteria of the lender are very important and need to be met in order for you to get financing for land.
The most common criteria required by all banks and lenders are:
- Credit Score
- Income
- Mortgage History
- Debt Ratio / How much debt vs income per month?(No more than 43%)
You may also need one or more of these additional criteria:
- Previous Land Ownership
- Current Asset Percentage
- Down-payment Amount For First Time Buyers generally requires a 20% down payment on their home purchase.
What Documents Do You Need?
The documents you’ll need will vary slightly depending on your lender, but there are some basics that you’ll need to provide.
You will need to fill out a property information sheet (to prove where the property is). Don’t forget about a copy of a recent utility bill or other proof of address for each person named on the mortgage application. After that, gather some of your employment details, like how much money everyone involved earns. Bank statements for the last three months from all current accounts are needed It’s also smart to give a copy of your passport/driving license which is usually done electronically now so try not to worry about posting off copies!
Meet With A Mortgage Broker
Brokers will help you find the right type of mortgage for you. It’s a great resource if getting financing for your land in the UK seems hard to do on your own, or if getting finance through other means such as peer-to-peer lending isn’t working out too well.
When meeting with one, they should know exactly what kind of property and requirements you have. It may be worth getting advice from professionals like solicitors before going into negotiations to ensure that any contract drawn up will work in your favor.
Getting financed for land is not too hard in the UK. Once you find a lending company, it’s going to be a breeze. Just make sure you meet their criteria and get all the documents in order. After that, meet with a mortgage broker, and you’ll be set for buying land. Good luck!
