AMC recommendations?

Juggler

Member
Livestock Farmer
Location
Anglesey
I currently have no borrowing but could do with raising some money to carry out improvements to the land/buildings and house, good salary coming in from full time employment and decent income from the diversified farm business.

The last bank I had a mortgage with need a business plan before they will consider it, the amount I'm after isn't a huge amount and it doesn't really lend itself to a business plan as there will be no immediate return in income, however it will make our lives easier and bolster existing income streams.

Does the AMC require a business plan or will they lend on asset value and proof of income / affordability? Any experiences the collective can share of their dealings good or bad?
 
AMC will send their local land agent round to do a full report on the viabilty of the borrowings. Maybe speak to an AMC agent direct to see what they think or speak to AMC on the phone

Good thing about AMC is, as long as you keep up with repayments they never bother you.

About 10 ? years ago when milk price was on the floor we wanted to go interest only for 12 months. Rang them. "Email your last accounts & a brief note on why, they said
Approved next day with no addition fees.

Bank will turn up every year wanting cash flows etc etc. etc
 

neilo

Member
Mixed Farmer
Location
Montgomeryshire
I currently have no borrowing but could do with raising some money to carry out improvements to the land/buildings and house, good salary coming in from full time employment and decent income from the diversified farm business.

The last bank I had a mortgage with need a business plan before they will consider it, the amount I'm after isn't a huge amount and it doesn't really lend itself to a business plan as there will be no immediate return in income, however it will make our lives easier and bolster existing income streams.

Does the AMC require a business plan or will they lend on asset value and proof of income / affordability? Any experiences the collective can share of their dealings good or bad?

If it's a relatively small amount, and you have proof of income to cover the repayments, most banks will lend up to £30k with few questions about what it's for & unsecured, and at 3% currently.
It's not supposed to be for business use, but you could be buying a car, improving the house, etc. I looked at it as a cheap alternative to HP finance a couple of years ago, but they didn't like the personal account not having enough regular income to cover it (I hardly use that account as the robbers don't pay anything on it). No problem if you have an full time income stream though.

You can get an idea of rates here:
 
I’ve never used them. I have heard of plenty of other folks using them to buy land and for improvements and they haven’t had any issues. I suspect they got loans off them due to the bank not being keen. All had big assets.
They used to lend up to 60% of asset value without questions being asked as above they have to prove anyone can keep up repayments now.
 

steveR

Member
Mixed Farmer
AMC will send their local land agent round to do a full report on the viabilty of the borrowings. Maybe speak to an AMC agent direct to see what they think or speak to AMC on the phone

Good thing about AMC is, as long as you keep up with repayments they never bother you.

About 10 ? years ago when milk price was on the floor we wanted to go interest only for 12 months. Rang them. "Email your last accounts & a brief note on why, they said
Approved next day with no addition fees.

Bank will turn up every year wanting cash flows etc etc. etc
Happily, not here they don't!

Plenty of collateral, and repayments always made on time. Used to ask for Accounts, but don't even bother with these now!

Cannot pay AMC off early (without, effectively, a massive penalty) so worth bearing in mins.
 
Happily, not here they don't!

Plenty of collateral, and repayments always made on time. Used to ask for Accounts, but don't even bother with these now!

Cannot pay AMC off early (without, effectively, a massive penalty) so worth bearing in mins.
Are you sure about the early repayment?
I was under the impression that the penalties in the main were the difference in interest rates between The borrowing date and current date of on variable rate.
 

steveR

Member
Mixed Farmer
Are you sure about the early repayment?
I was under the impression that the penalties in the main were the difference in interest rates between The borrowing date and current date of on variable rate.
I paid of a little early after declining the "offer" 10 years ago. AMC wanted all the interest that would have accrued over the full timescale of the loan!

I paid off early of a few Grand recently, to get the Deeds back for a future project.
 

Bwcho

Member
Location
Cymru
My experience says that most of the time, how helpful a bank is, comes down to the individual you're dealing with, and even then with promotion/jumping ship/restructuring these people don't seem to stay in post for long. Exceptions to this seems to be HSBC for their personal accounts and overseas customer services. The real important fixed comparative for me, is a bank's lending criteria and interest rates. The rest is very much a bonus/lottery.

Stark contrast to the 'good old days' of yesteryear when a certain long-standing legend of a Natwest bank manager in West Wales, would bend over backwards to retrospectively give you a loan, after you'd already bought an asset...having given the mildest of bollockings about taking the bank for granted, of course 😂
 

steveR

Member
Mixed Farmer
My experience says that most of the time, how helpful a bank is, comes down to the individual you're dealing with, and even then with promotion/jumping ship/restructuring these people don't seem to stay in post for long. Exceptions to this seems to be HSBC for their personal accounts and overseas customer services. The real important fixed comparative for me, is a bank's lending criteria and interest rates. The rest is very much a bonus/lottery.

Stark contrast to the 'good old days' of yesteryear when a certain long-standing legend of a Natwest bank manager in West Wales, would bend over backwards to retrospectively give you a loan, after you'd already bought an asset...having given the mildest of bollockings about taking the bank for granted, of course 😂
When I bought land in the mid 90s, I had been speaking with an AMC Agent from S Shropshire. I found him extremely unpleasant and unhelpful and went with Barclays and put it all together before the Auction.

About 2 months after my succesful purchase, same AMC man called me, asking did I still want the loan! Bizarre...
 
Last edited:

Flatland guy

Member
Location
Lincolnshire
When I bought land in the mid 90s, I had been speaking with an AMC Agent from S Shropshire. I found hime extremely unpleasant and unhelpful and went ith Barclays and put it all together before the Auction.

About 2 months after my succesful purchase, same AMC man called me, asking did I still want the loan! Bizarre...
Was the AMC agent also quoting for another bidder on that land, this can happen. The AMC agent could have backed another bidder who thought that you were lower or other methods of ruling you out were being done behind the scenes! When you were successful on purchase , the agent then thought he still might be in with a chance to get his cut when the other party was not going to give him/her a fee anymore!
With land purchases often better to get an out of the area person in for lending criteria/mortgage appraisal etc.

To echo above, when it comes down to borrowing, it is usually a people thing, good and bad people represent all of the main agricultural lending companies and it pays to shop around like any other business quote.
 

steveR

Member
Mixed Farmer
Was the AMC agent also quoting for another bidder on that land, this can happen. The AMC agent could have backed another bidder who thought that you were lower or other methods of ruling you out were being done behind the scenes! When you were successful on purchase , the agent then thought he still might be in with a chance to get his cut when the other party was not going to give him/her a fee anymore!
With land purchases often better to get an out of the area person in for lending criteria/mortgage appraisal etc.

To echo above, when it comes down to borrowing, it is usually a people thing, good and bad people represent all of the main agricultural lending companies and it pays to shop around like any other business quote.
Good point on the possible alternative bidder... Never thought of that!
 
Good point on the possible alternative bidder... Never thought of that!
Such things happen, it’s a relatively small number of money lenders/ land agents in any area and they’re all likely to have interactions with one another at some point.
Have heard of a farmer wanting to borrow X amount of money from bank to buy a piece of land. Bank wants to know if this land is worth X amount of money so makes enquiries with local land agent and the cats out of the bag on how far someone is prepared to go, no guarantee it gets back to the selling agent but as i say, it’s a small world.
 

alomy75

Member
Are you sure about the early repayment?
I was under the impression that the penalties in the main were the difference in interest rates between The borrowing date and current date of on variable rate.
Got an interest only loan here for a portion of the amount and repayment for the rest. Interest only portion can be repaid with no early repayment charge (apart from admin charge). Repayment loan attracts an early repayment charge. That’s why we were advised to split it should some surplus cash become available. Can’t fault AMC here. Agent is someone we’ve dealt with for years which I think makes a big difference.
 

Exfarmer

Member
Location
Bury St Edmunds
Happily, not here they don't!

Plenty of collateral, and repayments always made on time. Used to ask for Accounts, but don't even bother with these now!

Cannot pay AMC off early (without, effectively, a massive penalty) so worth bearing in mins.
you certainly can pay off AMC early with no penalty , but only if it is a variable rate loan. as far as I am aware all the major banks are same , but they may build something into the repayment plan if you desire, but it will obviously cost
 

Latest Poll on TFF

  • Yes

    Votes: 23 15.4%
  • No

    Votes: 126 84.6%

JCB launches Fastrac ‘iCon’

  • 185
  • 0
Written by Charlotte Cunningham from CPM Magazine

JCB has launched new Fastrac 4000 and 8000 Series tractors with an all-new electronics infrastructure which is claimed to deliver higher levels of performance. According to JCB, the new Fastrac iCon operator environment has three key features: iConfigure – creating a bespoke control experience for every operator iConnect – integrating advanced precision agriculture technology iControl – redefining operation through new driveline software The 175hp to 348hp (133kW to 260kW) Fastracs feature the new iCon armrest console and touch-screen display to provide flexibility in operator allocation and operator information, as well as a new transmission control strategy to enhance operator comfort and powertrain efficiency, says the manufacturer...
Top