Borrowing money for a farm

[Farmerpickle]

I'm currently looking to buy a farm. I intend to sell the one I currently own for planning later on down the line. However, I could with a decent bank manager to lend me the money to buy the farm. I was going to go with my bank which is Lloyds but the bank manager, who I've never liked, keeps changing his mind. After several weeks of preparation one day he phoned me and said I could go ahead and make an offer. When I did make the offer he said I was in no position to make the offer. And thanks to him I lost that farm and it was snapped up in a matter of days! My accountant didn't get on with him from day one either. I'm looking for any recommendations for money lenders. I'm very serious about going with AMC to lend some of the money for the next farm that I'm interested in. Are there any banks that anybody recommends? i.e Natwest, Barclays, Santander, HSBC or other?

 

[kfpben]

It probably depends on the individual more than the bank itself.

What area are you in?

 

[onthehoof]

Strange post

 

[Sheepykid]

What sort of rates was Lloyds offering you?

 

[Farmerpickle]

It probably depends on the individual more than the bank itself.

What area are you in?

I was told to get in touch an agricultural specialist but for some reason the bank won't put me in touch with him. The man who I don't get on with has been nothing but a pain from day one. I don't think he has been in charge of lending big amounts. The man who they won't put me onto is apparently really good.

The South-West I did get on well with Clydesdale but they are more interested if I farmed in Scotland since closing all their branches down here. I'm seriously thinking of changing banks after this ordeal.

 

[kill]

I'm currently looking to buy a farm. I intend to sell the one I currently own for planning later on down the line. However, I could with a decent bank manager to lend me the money to buy the farm. I was going to go with my bank which is Lloyds but the bank manager, who I've never liked, keeps changing his mind. After several weeks of preparation one day he phoned me and said I could go ahead and make an offer. When I did make the offer he said I was in no position to make the offer. And thanks to him I lost that farm and it was snapped up in a matter of days! My accountant didn't get on with him from day one either. I'm looking for any recommendations for money lenders. I'm very serious about going with AMC to lend some of the money for the next farm that I'm interested in. Are there any banks that anybody recommends? i.e Natwest, Barclays, Santander, HSBC or other?

Surely best to sell the farm you own and then buy your dream farm and enjoy telling your existing bank manager to stick his business up his ___ !!!! And move your banking elsewhere.

 

[Scholsey]

Just borrow off the AMC then if your very serious about it, it speeds it up slightly banking with Lloyds and borrowing off the AMC as it’s all from the same pot of money.

 

[Granite Farmer]

It sounds like you are asking for a bridging loan. If so they don't like 'em.

 

[Still Farming]

Are they all in the golf club together also?
If you and credit history with current bank are good and they know your situation then you would have thought a bridging loan be no trouble.
Do you have any planning options or guarantee in place or all are they crystal ball ideas?
Your Accountant should advise better too?

 

[haybob]

Bank's are extremely cautious at the moment. I was promised a yes or no on application and still no answer 4 weeks later. Doesn't fill me with much buying confidence..

 

[kfpben]

I was told to get in touch an agricultural specialist but for some reason the bank won't put me in touch with him. The man who I don't get on with has been nothing but a pain from day one. I don't think he has been in charge of lending big amounts. The man who they won't put me onto is apparently really good.

The South-West I did get on well with Clydesdale but they are more interested if I farmed in Scotland since closing all their branches down here. I'm seriously thinking of changing banks after this ordeal.

I can put you in touch with a good bank manager who covers Wilts/Dorset if you’re there.

 

[Farmerpickle]

What sort of rates was Lloyds offering you?

About 2.2% which is a really good rate as AMC is around 3%. This means that I would be paying about £1000 extra back each month.

 

[Farmerpickle]

Bank's are extremely cautious at the moment. I was promised a yes or no on application and still no answer 4 weeks later. Doesn't fill me with much buying confidence..

You cannot beat having your own money! But when you're young and fit it simply just isn't there. When your old and frail ,you don't know what to do with your money!

 

[Farmerpickle]

I can put you in touch with a good bank manager who covers Wilts/Dorset if you’re there.

I'm afraid that I'm Somerset and Devon border.

 

[serf]

As said above , I would get your existing plot sold or sealed first , take the stress out of the job if it's a dead cert for development, buy at your leisure with funds guaranteed.

 

[Farmerpickle]

Are they all in the golf club together also?
If you and credit history with current bank are good and they know your situation then you would have thought a bridging loan be no trouble.
Do you have any planning options or guarantee in place or all are they crystal ball ideas?
Your Accountant should advise better too?

Have excellent credit history and I thought the same as you. It would be no trouble. It is the complete opposite. The advise from the accountant could be better too.

 

[Farmerpickle]

As said above , I would get your existing plot sold or sealed first , take the stress out of the job if it's a dead cert for development, buy at your leisure with funds guaranteed.

Great idea, but I would like to make sure I have somewhere to first.

 

[farmerdan7618]

Great idea, but I would like to make sure I have somewhere to first.

I'd follow @serf advice, get the sale sorted first.

Otherwise you're looking at bridging loan territory on an unknown date and along with the rollover consequences for tax you might find there isn't quite as much left as you hoped.

 

[Frank-the-Wool]

I am surprised about your experience with Lloyds and I am sure it is the individual rather than the bank.
I took an interest only loan with them recently and was surprised at how good they were compared with AMC which Lloyds also owns. There is definite competition between the Managers of Lloyds and AMC managers.
AMC are better for long term loans but none of them are keen at the moment unless you have 50% of the cash!!

 

[upnortheast]

AMC
Great thing with them is as long as you are repaying on time they never bother you. - apart from letters through the post offering yet more money.
When the milk price was on the floor a few years ago a 3 minute phone call & emailing a copy of our latest accounts was all it took for them to agree 12 months on int only.