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FAQs

A compilation of our most common questions and answers. If you can’t find the answer you’re looking for please call us or email us through our contact form. We will be pleased to help you.

  • Do you belong to any regulatory bodies or organisations?

    Yes, we are members of the National Association of Commercial Finance Brokers (NACFB). We voluntarily subscribe to the NACFB and by doing so, we operate under an Office of Fair Trading registered Code of Practice. This is your assurance that you are working with an organisation of the utmost integrity.

    We are Corporate Affiliates of The British Institute of Agricultural Consultants (BIAC). As members of this organisation we comply and pledge to facilitate and enhance the provision of impartial, high quality advice to those in the rural environment.

    As members of the Institute of Agricultural Management (IAgM) we support and promote the principles of high standards of practice across the spectrum of agricultural management disciplines.

    Our co-director Rob Lister is a member of the Royal Institute of Chartered Surveyors (RICS). He maintains his professional development so that he can offer our clients the best mortgage advice for land and property management and works to the RICS high standards of integrity.

  • Why should we trust you to arrange our finance?

    Our business is built on integrity. Our model has served us well throughout the credit crisis and we remain in business due to our success in delivering successful lending outcomes for our clients, often where the clients or other consultants have failed.

  • What makes you different?

    We specialise in a very niche market which requires unique skills and understanding. These are skills that our whole team possess.

    We don’t simply pass a name and address to our contacts at banks and lenders. We work on your behalf to communicate your requirements in a way that the bank or lender decision makers understand. In doing this, we increase the chances of your success in raising finance.

    Because of our relationships with a wide range of lenders, we also have access to preferential lending rates that would not be available if you went direct.

  • What exactly do you do?

    We help you to raise capital for any farm, rural or land-based business for any purpose secured principally against rural property or land.

    We act as a communication point between you and our pool of over 30 suitable rural lenders. Using our wealth of experience of agricultural and rural businesses finance, we can find you the funding that you need.

  • Do you only provide farm and rural finance?

    Our main focus is farm and rural finance, however our wealth of experience in finance and the skills across our team enables us to draw upon this expertise to accommodate for a vast range of business types, circumstances and requirements.

  • Do you cover the whole of the UK?

    We are a nationwide company and cover the whole of the UK.

  • Why should I use you instead of my bank?

    It is not really a question of using us instead of your bank. In the first instance, we will work with you to improve the communication between you and your existing bank. But we can also talk to other providers to ensure that you are successful with your funding request and that you have the best terms for your business for the long term.

  • Are you a bank or lender?

    Neither. Some people might call us a broker as that is a term that they understand. However, we do far more than arrange and negotiate funding. We are financial consultants who identify clients’ key requirements and objectives and find innovative and bespoke solutions for now and the long-term.

  • For what purposes can funding be arranged?

    Funding can be arranged for any business purpose, including (but not exclusive to) buying a new property, refinancing existing borrowing, diversification and development, expansion, renewable energy projects, working capital and for any other capital requirements including matrimonial or partnership dissolutions, capital gains and/or inheritance tax liabilities.

  • What type of businesses can you help?

    • Farms and rural or farming estates
    • Smallholdings, country houses, houses with land, properties with occupancy restrictions and agricultural ties.
    • Equestrian establishments including riding schools, livery yards, studs, training yards, competition yards, racing yards, polo parks, cross country courses and equestrian tied properties.
    • Rural businesses including holiday cottages and complexes, log cabins, caravan sites and park homes, fishing lakes, kennels and catteries, marinas, forestry, farm play parks, outdoor activity pursuits, plant nurseries and garden centres.

  • How long will it take before the loan funds would be available?

    There are several factors that determine timescales. It will usually depend on what you need the funds for (e.g. a purchase or to refinance borrowings) and the complexity of the property being offered as security i.e. if it is registered title or not.

    However, there are ways to speed up the process, which we use. On average we find that it takes 16 weeks for you to receive the funds. However, by using the right solicitor and continuing to drive the process, there is no reason why the time to release of the funds should take more than 8 weeks.

  • What other costs are involved when arranging rural finance?

    Typically fees are as follows:

    Lenders fee 1-2% of the loan amount

    Lenders legal fees from £350 for each security property

    Valuation fee of £1.50 per ‘000 of security value. This scale diminishes once security value rises over £1m.

  • How much do you charge and when?

    Our first meeting with you is free of charge and without obligation.  At that time, our fees will be discussed and they will be clear before you commit to us and us to you.

  • Which lenders do you use?

    We currently have a panel of over 30 lenders. We constantly and actively work to improve these existing relationships and to develop new ones. The choice of lender will depend largely on your lending proposal and your circumstances.

  • What is the process?

    • First, we meet with you to discuss your requirement. We compile the relevant information and if necessary create a business plan and financial forecasts.
    • We will submit a detailed lending proposal to our selected banks and lenders.
    • After their positive responses, we introduce you to the selected funding partners and work with you to negotiate with the lenders to get the best rates and terms.
    • Once funding is agreed, outline terms are provided and subject to your acceptance of those terms, you can instruct solicitors and your land and property is valued.
    • The legal process continues until the mortgage is in place over the property that you offered as security and once that is complete, the funds are released.

  • Is there a maximum loan amount?

    There is no maximum borrowing amount. However, the maximum that any business will be able to borrow will depend upon the circumstances of that business, the ability to meet the repayments and the security available.

  • How do I calculate my monthly repayments?

    For an estimate of monthly repayment costs, you can use our Ag Mortgage Calculator.

    Another method is to multiply the amount of £’000’s by £6.50 which will give you a good indication of the repayments over 25 years at say 6% interest e.g. £500,000 = 500 x £6.50 = £3,250 monthly repayments.

  • Can I calculate how much I can borrow based on my current salary?

    Unlike a residential mortgage where lenders use your salary or income as a basis for the amount you can borrow; commercial lending is different.

    Lenders will ask for a ‘shopping list’ of information to convince them of your ability to run the business and repay the mortgage. You can find more about this in our Business Plan Guide.

  • What is likely to be the rate of interest?

    Interest rates varydepending on each lender, their level of risk, the amount you wish to borrow and the quality of your lending proposal.

    Variable interest rates are calculated at a margin percentage over either the prevailing Bank of England Base Rate or the lenders own base rate. Margins currently range from around 2% (for strong cases) upwards.

  • I have a 10% deposit towards a purchase, is this sufficient?

    Not really, 30% of the purchase price is the minimum deposit you need, unless you have additional owned property (either yours or a willing third party’s) which could be used by the lender as security.

  • Can I borrow 100% of the purchase price of a property?

    Borrowing 100% of the purchase price of a property is a possibility. However, there are two caveats here. Firstly, you would need to offer additional property as security that is owned by yourself or a third party. This is because you still must comply with the 70% LTV rule. Secondly, the borrowing would be subject to the ability of your business to meet the repayments.

  • How much deposit do I need to buy the land or property?

    Lenders will require you to pay at least a 30% deposit.

    However, there could be ways around this if you can offer additional property as security. This would be property either owned by yourself or by a willing third party – such as a family member or business partner.

  • What is the maximum Loan to Value (LTV)?

    The maximum LTV typically is 70% of the security offered. So, using a simple example, if you want to borrow £700,000, the security value would have to be £1 million.

  • How much can I borrow to buy the land or property?

    Lenders will secure your mortgage against your new land or property. If you can’t repay the debt they can sell the land or property to recover their costs.

    Lenders will usually lend you up to 70% of the value of the security property. This is termed Loan to Value (LTV). So, if the land or property is worth £200,000 – a lender would lend you £140,000, and you would pay the other 30% (£60,000) as a deposit.

  • I am buying a going concern farm, rural, or equestrian business. Can you help?

    Farms are generally not sold as a going concern and rarely have we seen an equestrian business sold in this manner. However, there are some rural enterprises that are such as include holiday cottage complexes, holiday parks, fisheries, kennels and catteries, nurseries and garden centres.

    These businesses often include an element of value attributed to the trading business which not all lenders can consider within their valuations. It is therefore important that from the outset you engage a funding partner who understands the type of business, how to value it and how to lend to it.

  • I know my neighbouring farm will be coming up for sale soon. What should I do to get myself in a good position?

    Talk to us now. Planning is key. If you are in a strong position to move i.e. with funding pre- agreed, you will be able to negotiate more aggressively with the vendor. Remember, anyone selling a property is likely to be under an element of time pressure and if you can move quickly these are strong grounds for negotiation.

  • My situation is complicated and difficult. Can you help?

    Our business has been built on helping people and their businesses. This is one of our areas of strength – we are problem solvers and always to go the extra mile to get you to where you want to be.

  • My accounts aren’t that great, and I need finance. Can you help?

    Accounts are produced for tax mitigation purposes. It is the job of the accountant to make them look worse than they really are. We understand that!

    It is our job is to understand the history of your business, but more importantly to understand where your business is heading and how you intend to get there. Providing your plans are transparent, robust and stand up to scrutiny, funding is possible even if your accounts don’t look great.

  • My business is not agricultural. Can you help?

    No problem. We can help to fund any rural or land-based business or indeed any commercial business activity that operates from rural premises i.e. tree surgeon, engineer etc.

  • I have never done this before, so how do I go about purchasing farmland or a rural property?

    We understand that this can be daunting. However, we can hold your hand throughout the process and can introduce you to our associated professionals to give you the essential advice that you need to bring your plans to fruition.

  • I am thinking about selling my farm as my bank doesn’t support me. Can you help?

    Selling is the final option. Just because one bank doesn’t want to support you doesn’t mean that this is an industry-wide policy. We will explore the potential issues with the business and put into place a strategy to address these. With a firm plan in place and a clear direction for the business we would then approach our funding partners who we know would support you.

  • Can you help even though my business is a new venture (start-up)?

    This is a possibility. Our funding partners’ criteria will be more demanding, but it is possible particularly with a business plan that is well thought out, transparent and stands up to scrutiny.

  • I need funds urgently. Can you help?

    There is always a way. Our aim is always to find the best terms for you and to ensure the longevity of your business. Often, we find that it’s not quite as urgent as originally thought and it’s quite common for us to mediate to help you ‘buy time’ to ensure the most cost-effective funding solution is put in place.

  • My bank has said yes all along the way but has now let me down at the last minute. Can you help?

    That’s a very disappointing and frustrating position to find yourself in. We can review the situation and investigate if there are any grounds to talk to your existing bank again. Alternatively, we can address the issues raised and approach our alternative funding partners.

  • My bank doesn’t understand me and I feel under pressure to move banks. Can you help?

    This is often a communication issue, or your business is in the wrong division of your bank. Our first port of call will always be to try to resolve any issues with your existing bank.

    If your bank relationship is broken, we will try and fix it. If we can’t, then we can help you find an alternative relationship with one of our funding partners that best suits your purposes and circumstances. 

  • My property has an agricultural restriction on it (a tie). Can I get a mortgage on it as my bank is unable to help?

    Occupancy restricted or agricultural tie properties are not a problem to fund – providing you can satisfy the occupancy restriction. The easiest way to answer this is to look at the planning consent on the property, particularly the occupancy restriction clause. Ask yourself if you comply or not. If you answer is no, then funding will not be possible.

  • My bank is insisting upon various lending conditions. Is there a more competitive solution?

    This is one of the problems of finding finance by yourself. How do you know if the offer of funding is competitive or reasonable? Lenders can vary considerably in both their terms and conditions. We can review your offer and help to negotiate terms or restrictive conditions away. 

    However, if the terms are uncompetitive or unfair then we would look to other banks or lenders to see how these might be improved.

  • I have approached The Agricultural Mortgage Corporation (AMC) and my own bank for finance to no avail. Does that mean there are no other options available to me?

    No, certainly not. The lending market is a very uneven playing field. You need to know which lenders have an appetite, and what criteria are driving their lending decisions. We have this knowledge and will help you to navigate the market to deliver the right funding solution when you need it.

  • My bank has offered me finance terms. Can you improve on them?

    Just give us a call. We will tell you honestly if they are competitive or not. If we think you can get a better deal elsewhere, we will tell you and can help you.