Agricultural & Farm Land Mortgages

Agricultural and farm land mortgages are specialist financial products designed for working farms, smallholdings, and agricultural properties. Unlike standard residential mortgages, these products understand the unique nature of agricultural income, land values, and rural property requirements.

Who Qualifies for Agricultural Finance?

• Working farms with active agricultural operations
• Smallholdings and lifestyle farms
• Mixed-use properties combining residential and agricultural use
• Buyers seeking agricultural land for farming or diversification
• Existing farmers looking to expand or refinance

How Income is Assessed

Lenders assess agricultural finance applications differently to residential mortgages:

• Farm accounts: Historical trading accounts showing farm income and profitability
• Diversified income: Additional revenue streams such as farm shops, holiday lets, or renewable energy
• Projected yields: For new operations, lenders may consider projected income based on land quality and market conditions
• Agricultural ties: Some lenders require the property to have agricultural ties or be used for farming purposes

Typical LTV Bands and Pricing

Agricultural land mortgages typically offer:

• LTV ranges: 50-60% for land without planning, up to 70% for properties with full planning permission
• Specialist lenders: Often required as high-street banks may not understand agricultural valuations
• Longer terms: Agricultural mortgages may offer terms up to 30 years
• Flexible repayment: Some lenders offer seasonal repayment structures aligned with farming income cycles