01264 334344

All about interest

We offer both variable and fixed rate interest options for our Standard Loan and variable interest rate options for our Flexible Facility.

Variable interest

  • A variable interest rate changes with the Bank rate set by the Bank of England. We charge a margin above that rate.
  • Variable rates can go up or down in line with movements in the Bank rate.

Fixed interest*

  • A fixed interest rate is a combination of the money market rate (i.e. the rate AMC has to pay) and our margin.
  • Fixed rates are set for an agreed period – either the whole term of the loan or a shorter period. The actual rate is the one quoted on the day of completion.
  • Fixed rates give you an advantage if Bank rates rise, but can mean you pay a higher rate if the Bank rate goes down.
  • If you want to pay off a fixed rate loan early, you may have to pay a redemption fee, which could be substantial. If you are considering repaying your loan, please contact us for information on possible redemption fees.

How much will I pay?

We calculate interest daily, on the capital outstanding on that day. Any capital repayments are applied immediately to the account.

  • Flexible Facility – you will be charged interest monthly. 
  • Standard Loans – you can choose to be charged monthly, quarterly or half-yearly on dates that suit your business. If you decide to pay half-yearly, you will incur extra interest charges because this amounts to a delay between billing and payment.

Payment is due 17 days after the charging date. This means that when your statement arrives, you have 14 days' advance notice of the amount due.

Use the handy Mortgage and Loan Calculator to work out what your payments might be. 

Repayment or interest-only?

  • With a repayment loan, you pay off some of the capital along with the interest due. At the end of the loan term, you will have repaid the full loan amount.
  • With an interest-only loan, you make a regular repayment amount throughout the agreed term, but must then pay off the full capital at the end of the loan term.

There’s no requirement for you to purchase life/endowment cover or payment protection for your interest-only loan, but you do need to be sure you will have the funds to pay back the capital.


Applying for a loan

View details of the application process and the documents you will need, as well as answers to frequently asked questions.

How to apply

* There is always a possibility that interest rates may go down leaving a fixed rate loan at a higher level compared to a variable rate loan. However, if interest rates rise, a fixed rate loan will remain at the same rate.

How much can you borrow?

Use our Mortgage and Loans Calculator to work out how much you could borrow to support your ambitions.

Mortgage Calculator

Choosing the right finance agreement

For both variable and fixed interest rates, the amount you pay is a combination of the money market rate (the rate AMC has to pay) and our margin. The margin is negotiable, depending on the strength of your business and the size of the loan.

We recommend you consult your financial advisor when choosing the type of interest and repayment terms to support your plans.

Calls charged at standard rate.

AMC loans available for business purposes only, provided on a secured loan basis. Minimum AMC standard loan £25,001, minimum flexible facility £30,000. To meet customer requirements, lending criteria will vary. Lending is subject to status.

If you have a hearing or speech impairment you can use the Next Generation Text (NGT) Service (previously Text Relay/Typetalk).

Office hours are 09:00 to 17:00, Monday to Friday, excluding Bank and Public holidays.

Please note that any data sent via e-mail is not secure and could be read by others.

The Agricultural Mortgage Corporation plc, registered in England & Wales, no. 234742. Registered office: Charlton Place, Charlton Road, Andover, Hampshire SP10 1RE. Telephone: 01264 334344. The Agricultural Mortgage Corporation plc is a wholly owned subsidiary of Lloyds Bank plc.

Lloyds Banking Group includes companies using brands including Lloyds Bank, Halifax and Bank of Scotland and their associated companies. More information on Lloyds Banking Group can be found at lloydsbankinggroup.com.