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Posted: Mon Aug 13, 2007 10:39 pm
by happy hollidays
Hi, have any of you taken out a mortgage with a high street lendor for the purchase of a farm ? We have seen a farm with AOC come up for sale very near home and before we go to view want to look into the mortgages, I have seen agricultual finances houses but with a higher interest rate on the internet. All comments gratefully received, thanks.
Posted: Tue Aug 14, 2007 7:29 am
by Martin
Hi Estelle,
The Farmers Weekly will probably be the best place to look for lending for agricultural purposes. I'll have a look later and get back to you.
Martin.
Posted: Tue Aug 14, 2007 7:32 am
by Broomcroft
Estelle
Banks can be a good source and can be more flexible. Interest on the loan/mortgage should be chargeable against your income/husbands income if done correctly, reducing the cost dramatically. Something flexible (repayable at any time without penalty) at 1% over base rate would be nice.
Posted: Tue Aug 14, 2007 7:37 am
by Saffy
I have just approached several lenders for a mortgage to convert a barn for holidays as part of my farm business.
The offers were similar from all these but want different things for security that suit their type of business:
The Principality - A Welsh Building Society -The barn for security.
The Monmouthshire - I live there - The barn for security.
The Nat West - My farmhouse for security.
The AMC - Agricultural Morgage Corporation - The farm for security.
None of the building societies are interested in me. I found the AMC took their time but were very approachable as were the others.
Good luck.
Stephanie
Posted: Tue Aug 14, 2007 9:05 am
by bjreroberts
Saffy,
It is a normal condition on any mortgage that the mortgage company have your property as security.
I can understand you not wanting to give your main home as security, but for them to ask for the barn as security is perfectly normal.
Posted: Tue Aug 14, 2007 9:30 am
by Saffy
Hi Bjroberts,
Yes I realise that any lender will require some kind of security and have no problem with that, I have only mentioned it as I thought it might interest happy hollidays that they have offered to do it on different things.
It is an interesting decision for me as I would have to get the barn onto its own deeds to use it and that would be an extra expense and it all has to be considered. As I don't intend to sell the barn it may be better not to go to that expense.
Also every lender has put their offer in a slightly different format so I am finding it quite difficult to work out which is actually the best offer for me, I think they are all much of a muchness but it sways me a little to have a lender that I can actually go and see locally.
Stephanie
Posted: Tue Aug 14, 2007 9:37 am
by Louisa Gidney
The Ecology Building Society might be worth investigating. They lend for projects that more commercial BS won't touch.
Posted: Tue Aug 14, 2007 9:58 pm
by happy hollidays
Thank you for your replies, the ball is rolling so to speak, next thing on the agenda is the AOC.