Agricultural Mortgage Corporation Ltd

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Updated: Aug 20, 2021

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.



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