Land as collateral?

D

Dustyman

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We're trying to raise cash to purchase a new home. We have some cash and some land (yes we are thankful).
Probably both together (cash & land) will make up a little more than half the value of the house. (That's if a Bank accepted the land as collateral).

Question is will Banks accept land as collateral? I was talking to KBC today and they told me they don't.

Is this a general rule with Banks or are there some out there that will?

Thanks in advance.

Dm
 
Banks aren’t generally interested in collateral for a mortgage except the mortgaged property itself.
 
I was in a similar position in 2005.
Good job and savings record, substantial deposit, and unmortgaged land.
The only financial positive of the land was its annual rental income.
Rather than solely rely on a financial broker I made a number of mortgage appointments myself. They all had zero interest in the farm as collateral. Just the annual income from it.
 
Farmland in Ireland is a very illiquid market. The average land parcel is sold ever several hundred years.

Issues with neighbours can play a big part. It's not very useful as collateral for something else.
 
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