How to apply
What do you want to achieve with your loan or mortgage? How much do you want to borrow? And how long do you want to borrow for?
We can help you answer those questions and choose a loan that's both cost-effective and fits your needs exactly. Please call our new business team on 01264 334747† to discuss your options.
Applying for an AMC loan or mortgage
Our step-by-step guide to applying for an AMC finance agreement.
- The first step is the application form. It’s simple to complete, but your nearest AMC agent or Regional Agricultural Manager can help do that for you – it’s all part of the service, with no obligation to go any further.
- You’ll also need to provide supporting documents, such as your last three years’ business accounts, planning permission, budgets and so on.
- If your proposal is accepted, we’ll send you a formal offer. We do recommend that you get independent financial and legal advice to be absolutely sure that the offer is right for you.
- If you accept our offer, we will value the property you’re using as security. We then arrange, through your solicitors, to place a legal charge against it.
- At the final stage, your loan becomes available and you can get on with the job of running a profitable, successful business.
If your lending application is declined or if you disagree with a conditional Loan Offer, you have the right to appeal.
How to appeal
Your questions answered
What can I borrow for?
You can borrow for any business purpose as long as your loan is secured on agricultural or rural property including land, dwellings and other buildings.
- You don’t have to take the whole amount at once. You can draw money as you need it (minimum £5,000) up to your limit.
- You can set the monthly payment at a level you choose, clear the monthly interest or pay a minimum of £5 each month.
- You can make capital payments whenever you want and without penalty. You can then re-borrow that money again and again. You don't have to re-apply.
- You can ask AMC to consider an extension of your loan term at any time.
- The loan is completely separate from your banking arrangements. This means you can structure your finances separately.
What do I need to consider before applying for an AMC loan?
- How long would you like to repay your loan? AMC loans are available from five to 30 years.
- Do you want to repay both the capital and interest elements of your loan over the term, or just the interest? With an interest-only loan, you need to be able to pay off the capital at the end of the loan.
- Would a fixed or variable interest rate be best for you?
Does it matter that my last accounts are quite old?
Ideally we require up to date accounts, but if your latest accounts are not yet available we will accept management accounts with a supporting budget. Our Regional Agriculture Managers will be happy to look through these with you.
If I take a further loan with AMC will I have to pay solicitors’ fees?
If your extra borrowing is covered by existing security (farm buildings and land) already held by AMC, no solicitors are needed.
What if I have a good relationship with my bank and their interest rate looks cheaper?
That's fine. You don't have to repay your overdraft when you take out an AMC loan because it can operate alongside your current account.
Remember too that your current interest rate may seem cheaper but you're paying bank charges, annual review fees and insurance on top. You may also have to take the bank's own buildings insurance and prepare annual audited or management accounts. All of these increase the real cost.
It may also be worth asking yourself what would happen if the bank changed its policy towards farm loans? All bank loans and overdrafts could potentially be called in, as they are linked to the current account facility.
Won’t moving my hard-core overdraft to AMC be too complicated and cost too much?
It's actually quite easy. Plus, we can add any bank charges to the loan, and there are no annual fees.
If I move my bank borrowing to AMC, won't my existing bank reduce my overdraft facility?
Possibly, but you could consider moving your current account to a different bank. AMC is part of the Lloyds Banking Group, which also includes Lloyds Bank, Bank of Scotland and Halifax, and we’d be happy to introduce you to them.
How can I appeal the decision if my lending application is declined?
If your application for lending is declined, you have the right to appeal that decision and have the decision independently reviewed by an experienced lender from our specialist lending appeals team. Where AMC approves a loan, you also have the right to appeal the conditions of that offer. For more information, visit how to appeal.
How to appeal
What happens if I want to increase my Flexible Facility?
Get in touch with your account manager. The minimum increase you can ask for is £10,000.
You may need to complete an application form and, if you need to set a limit that takes you over the 60% security threshold, you may need to provide additional security.
A loan fee (negotiable subject to a minimum of £750) will be charged to cover further valuation and set-up costs.
The right agreement for you
For more information about the finance agreements you can get through AMC, please visit our dedicated product pages.
Flexible Facility: Short-term funding
Standard Loan: Long-term finance
Mortgage to buy your farm tenancy
Loans for existing customers