Using Land As Collateral

D

dbrady01

Registered User
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55
Hi

I was recently been gifted some land ( about 3 acres ) and am currently looking into the option of building my own house. The problem is i have a pretty poor credit rating and so far banks wont give me a morgage because of it so i was wondering if anyone knew if its possible to use the land to help secure a loan/morgage i am looking for around 170k
 
It should be possible, when we got our PP we got a valuation done and submitted as part of the mortgage application. Hope that helps,m.
 
Get the land valued by a valuer, first as agricultural value (base value) and also as site value for your house. Then if you get planning permission for the house, the bank should take the site value as collateral. If they will not take the site value, they will at least take the ag value.
 
Just to clarify - are you actually going to build on the land itself? or are you offering the land as additional collateral for another project.
 
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