Borrowing rate

biggles

Member
Location
derbyshire
I'm looking at buying my first bit of ground, cost will be about £300k I can raise about half from sale of some bits and savings etc, what rate should I expect and from who with what strings, sorry it it sounds daft but have never borrowed before, cheers
 

Still Farming

Member
Mixed Farmer
Location
South Wales UK
I'm looking at buying my first bit of ground, cost will be about £300k I can raise about half from sale of some bits and savings etc, what rate should I expect and from who with what strings, sorry it it sounds daft but have never borrowed before, cheers
Bet they want 3-4 times the amount back for the pleasure over 20-25 yr loan typical periods???
 

Highland Mule

Member
Livestock Farmer
I'm in the process of buying a house every pound I borrow I will pay back £1.61 and that is around 2% over 27 years

Why are you taking so long to pay back? Surely best to pay quickly I’d rate is that high. I’ve had same mortgage since 2006 at 0.17% over BoE base rate, so in no hurry, but if it was much higher I’d be shoving all I could into it.
 

multi power

Member
Location
pembrokeshire
Why are you taking so long to pay back? Surely best to pay quickly I’d rate is that high. I’ve had same mortgage since 2006 at 0.17% over BoE base rate, so in no hurry, but if it was much higher I’d be shoving all I could into it.
I'm not going to take that long to pay it back, that is just the figures I was quoted, if I double up the monthly payment it will knock about 5 or 6 years off it
 

egbert

Member
Livestock Farmer
Why are you taking so long to pay back? Surely best to pay quickly I’d rate is that high. I’ve had same mortgage since 2006 at 0.17% over BoE base rate, so in no hurry, but if it was much higher I’d be shoving all I could into it.

With rates so low, I don't pay back a mortgage we've got, but keep any surplus cash on deposit as a war chest.
The difference is 1-2 %, but rearranging a similar loan if I suddenly took a fancy to something with a big price tag........ for a start i mightn't get that rate again.
If/when rates start going up, I'd look at paying it of faster.
 
I'm looking at buying my first bit of ground, cost will be about £300k I can raise about half from sale of some bits and savings etc, what rate should I expect and from who with what strings, sorry it it sounds daft but have never borrowed before, cheers
I'm paying 3.8% but the rates have gone up a bit. We fixed the rate over 10 years to pay it off quick. From memory £120k is costing me £24k over that period. I fixed for piece of mind but it would have been cheaper so far for variable. We are with AMC. Hope this helps.
 
Surely rates will also depend upon on ability to pay back and collateral?

For what it’s worth we are paying around 1% above base on variable monies during yr 6 of a 10 yr loan. In this world of automising there won’t be inflation so why fix ? It’s looking like we will pay £28k interest on £200k over the 10yrs.
 

thesilentone

Member
Livestock Farmer
Location
Cumbria
Have to agree on fixing, I only see the World Economy reducing prices not increasing, therefore no imminent reason to fix. But, events change things, and who knows what Mr Trump may do ?

A run on the pound after a no-deal Brexit will see rates increase, but once the Billionaires have used there security, they will go down again.
 
Surely rates will also depend upon on ability to pay back and collateral?

For what it’s worth we are paying around 1% above base on variable monies during yr 6 of a 10 yr loan. In this world of automising there won’t be inflation so why fix ? It’s looking like we will pay £28k interest on £200k over the 10yrs.

These figures just make your head spin really, 28K for the ability to control 200K- I just can't help thinking we won't ever see rates like this again in my lifetime.
 

biggles

Member
Location
derbyshire
Cheers for all the replies, had a ring round yesterday, and 3.5% seems about the norm that I can find for a 10 year, variable rate, with no over payment penalties, tried amc and the main banks, is this about the bottom line or should I be trying somewhere else? Cheers
 

Muddyroads

Member
NFFN Member
Location
Exeter, Devon
Cheers for all the replies, had a ring round yesterday, and 3.5% seems about the norm that I can find for a 10 year, variable rate, with no over payment penalties, tried amc and the main banks, is this about the bottom line or should I be trying somewhere else? Cheers
Was that from AMC?
 

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Red Tractor drops launch of green farming scheme amid anger from farmers

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