Rural Property & Acreage Mortgages

Rural property and acreage mortgages are designed for country homes, properties with significant land, and rural estates. These mortgages understand that rural properties often have unique characteristics, including agricultural buildings, paddocks, woodland, or development potential that standard residential mortgages may not accommodate.

What Qualifies as Rural Property?

• Country homes with acreage (typically 5+ acres)
• Properties with agricultural buildings or outbuildings
• Rural estates and manor houses
• Properties with paddocks, woodland, or agricultural land
• Mixed-use properties combining residential and agricultural/commercial use

How Lenders Value Rural Properties

Lenders assess rural properties differently:

• Residential value: The value of the house itself
• Land value: Additional value attributed to acreage and land
• Agricultural value: Value of agricultural buildings, paddocks, or productive land
• Development potential: Potential value if planning permission is obtained
• Comparable evidence: Similar properties sold in the area

Typical LTV Bands

• Standard rural property: 70-85% LTV, similar to residential mortgages
• Properties with significant acreage: 55-70% LTV, lenders may cap lending on land value
• Properties with agricultural buildings: 60-75% LTV, depends on condition and use
• Properties with development potential: May require specialist lender, 50-70% LTV

Specialist Lenders

Many rural properties require specialist lenders:

• High-street banks may not understand rural property valuations
• Specialist lenders understand agricultural buildings, land values, and rural markets
• May offer more flexible terms for properties with income potential (holiday lets, farm diversification)
• Better understanding of planning potential and development value

Income Considerations

• Rental income: Holiday lets, agricultural lets, or commercial income may be considered
• Diversified income: Farm shops, renewable energy, or other diversification income
• Affordability: Standard affordability checks apply, but lenders may consider additional income streams