HHLE PROPERTY MATTERS SPRING 2021 - Flipbook - Page 29
2020 saw the 1,000th client helped by H&H Land & Estates, with a finance
proposal through the Agricultural Mortgage Corporation (AMC). Since being
started in 1988 by Alan Bowe, the AMC agency has gone from strength to
strength and is now one of the top performing agencies in the North, today
led by Tim Parsons and capably assisted by Jonathan Hird.
2020 saw strong lending activity despite the pandemic, although the
activity was pushed back later into the year following the trend in land sales
following lockdown 1. Despite the challenges, the agency had one of its
busiest years for loan enquiries and applications in terms of loans size and
numbers. Borrowing requests remained varied, including re-financing, land
purchase and capital investment projects.
A final Brexit deal, despite some bumps remaining, gives a degree of
certainty. Financially the markets had already been pricing in the different
scenarios, so the cost of money has not changed dramatically since the
Interest rates therefore remain at an historic low and there looks like little
prospect of them rising anytime soon, for fear of damaging an already fragile
economy. Despite low cost of money, lenders margins have increased a little
but overall low rates are driving activity in agriculture. The Agriculture Act,
DEFRA Agricultural Transition Plan and the draft Environment Bill provide
a direction of travel and some welcome policy clarity which is positive for
lenders decision making.
Strength in commodity prices in some sectors continues from last year,
but we wait to see if the new trading arrangements and future trade deals
will impact. Businesses that are efficient, proactive and think ahead should
however see opportunities.
Despite the turmoil of the last 12 months, some sectors and businesses
have been turning in sound financial results which will help support
borrowing proposals going forward. Low interest rates allow investment for
the future with more clients considering long term fixed rate and interest
only loans. AMC is probably the only lender offering 30-year fixed rate loans,
which look attractive in an uncertain future of repaying national debt or
changing agricultural and environmental policy.
AMC is very much here for the agricultural sector whatever comes in
2021 and beyond, and are keen to lend for sensible, well thought out
and supported agricultural and rural business proposals. They, and we,
are working with farmers to achieve their goals in the midst of potentially
reducing incomes changes in subsidies, the push for sustainability or finding
new income streams.
Director of Professional Compliance
M: 07711 188827
M: 07860 376262
*AMC loans available for business purposes
only, provided on a secured loan basis.
Minimum AMC standard loan £25,001.
To meet customer requirements, lending
criteria will vary. Lending is subject to status.