Agricultural Mortgage Corporation Ltd
This was established in 1928. Share capital was subscribed by the Bank of England and other banks; the bulk of the funds. however, comes from debentures (over £100,000,000 outstanding) plus grants and loans from the Ministry of Agriculture, Fisheries and Food. Its primary purpose is to grant long-term loans against first mortgages of agricultural land and buildings. It has power to grant sixty-year loans, but forty-year loans are more common. Its secondary purpose is to make loans to landowners, to help carry out improvements to agricultural land and buildings. Borrowers apply through bankers or directly to the Corporation. Advances are mited to two-thirds of the estimated value of the property, rates of interest vary :om loan to loan, depending on market conditions. Repayments are made by halfyearly instalments. Loans for improvements depend on the annual value of the land being increased by at least the annual amount of the loan charges. The Corporation confines its activities to England and Wales. There is, however, a Scottish Agricultural Securities Corporation Ltd, subscribed by three Scottish banks.
Reference: The Penguin Business Dictionary, 3rd edt.
Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >