In these days of volatile interest rates, a fixed-interest facility can be a considerable attraction, and this is what TSB Bank is introducing for major farmland or buildings purchases in England and Wales.
Loans of £100,000 or over will be available to new or existing customers, with flexible repayment systems and incentives to borrowers who use TSB as their principal bankers.
TSB Farm Finance Loans will be available over periods of between five and 25 years, with repayments at monthly, quarterly or half-yearly intervals, or through endowment or pension policies where repayment will be on maturity of the policy.
Interest rates, fixed for five years, will begin at 12.5%, with the lowest rates being for customers who use TSB as their main bankers.
There will be no arrangement fees for the loans — which will be secured on the land or buildings financed — although a charge may be imposed in the event of early repayment of the loan. There is no ceiling on the loans available, which will be up to 75% of the cost or valuation of the asset to be purchased.
At current rates the offer appears competitively priced, particularly in the context of those farming customers who use TSB for all their banking requirements.
