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Overdraft arrangement fee

Last post Fri, May 25 2012 15:37 by freeranger. 47 replies.
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  • Mon, May 21 2012 8:29 In reply to

    • henarar
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    • Joined on Thu, Feb 21 2008
    • zumerzet

    Re: Overdraft arrangement fee

    glasshouse:

    the £300 wheat is still coming.

     

    So is the £30000 land or is it?????????????????

  • Mon, May 21 2012 20:38 In reply to

    Re: Overdraft arrangement fee

    We have just paid 1.25% arrangement fee.

    The Bank of England base rate means nothing now, it is the interbank rate that dictates the cost of borrowing

  • Tue, May 22 2012 23:31 In reply to

    Re: Overdraft arrangement fee

    henarar:

    glasshouse:

    the £300 wheat is still coming.

    So is the £30000 land or is it?????????????????

    Pardon ?

    http://www.holidaycambriancoast.co.uk/

    http://www.cottages4you.co.uk/cottages/llechwedd-mawr-oq2
  • Wed, May 23 2012 5:53 In reply to

    Re: Overdraft arrangement fee

     I believe what you call an overdraft is what we call a line of credit, here an overdraft means you spend more than you had and the check bounced.  I assume the arrangement fee is what some banks would call an administrative fee, ie the cost of drawing up the note.  I changed banks because they tried to charge me $100 at renewal. 

    When you speak of the base rate being .5%, surely you don't mean you can borrow money in the UK for that?  I borrowed some for 3.8%, I thought that was incredible, if you can borrow at .5%, maybe I better bank in England.

  • Wed, May 23 2012 5:54 In reply to

    Re: Overdraft arrangement fee

     I'll add I never saw a time in my life when land prices didn't make us shake our heads in wonder at how on earth any dummy thought they could make that price work, but most seem to.

  • Wed, May 23 2012 6:47 In reply to

    • Jacobus
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    • Worcestershire
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    Re: Overdraft arrangement fee

    kansasfarmer:
    When you speak of the base rate being .5%, surely you don't mean you can borrow money in the UK for that?

    KF, Bank of England Base Rate (0.5%) is the equivalent of your Federal Reserve Rate (0.75%)

  • Wed, May 23 2012 7:30 In reply to

    • peesie
    • Not Ranked
    • Joined on Mon, Jul 18 2011

    Re: Overdraft arrangement fee

    kansasfarmer:

     I'll add I never saw a time in my life when land prices didn't make us shake our heads in wonder at how on earth any dummy thought they could make that price work, but most seem to.

    Probably the same here,except for a few years either side of 1990.
  • Wed, May 23 2012 17:01 In reply to

    Re: Overdraft arrangement fee

     

    glasshouse:
    since daddy didnt leave me my farm, or the money to run it

    Nor mine. Land is always expensive on the day you buy it, or "too" expensive if you are underbidder at an auction......but the underbidder will probably never see that bit for sale again in their lifetime.

    boveyfarmer:
    The Bank of England base rate means nothing now
     

    Not to me it doesnt. All my money is BoE base + "x"%. 

     

    kansasfarmer:
    if you can borrow at .5%, maybe I better bank in England

    By that argument, borrowing Japanese yen would have been the thing to do for years. Too much currency risk to make the real cost as low. Talk is of UK base rate being cut to 0.25%. But what do you do with the borrowed money? Use it to replace other borrowed money (aka doing a Greece) perhaps? Or buy some (overpriced) land or machines. Or just say it is so cheap, and inflation many % higher, you may as well spend it on holidays and living life. 

    Not for print please.
  • Wed, May 23 2012 17:13 In reply to

    Re: Overdraft arrangement fee

     

                       £300 wheat is still coming

     

    Not until Easter, probably.

    We're well on our way, thanks to Ben and Merv, but it may take until Christmas for Angela to join in the printing.

  • Wed, May 23 2012 22:55 In reply to

    Re: Overdraft arrangement fee

    kansas, the only people buying land at our prices are people who have had a windfall, ie a housing development, a windfarm, or selling a business..

    what is kansas land worth as a multiple of the average yield?

  • Wed, May 23 2012 23:37 In reply to

    • old mcdonald
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    • Joined on Mon, Oct 27 2008
    • Near Castelo Branco, Portugal

    Re: Overdraft arrangement fee

    tesla, You say a lot in that short post.
    www.oldmcdonaldsolives.com
  • Thu, May 24 2012 10:19 In reply to

    Re: Overdraft arrangement fee

    Several post ago someone mentioned moving Banks if you didn't like the level of service your current provider was giving you. Its all straightforward unless you have a large loan, as I had in Feb 08 with a Bank with a Black Horse, and the loan still had 19 (at that time) years to run. It was going to cost me 15k just to leave said Bank, and when they have just advised you to exceed your OD limit to purchase new equipment (in the same week Lehmanns went tits up) and then turned round and said 'Oh we're sorry we can't increase your OD limit now to cover the purchase as you don't have enough collateral' despite the valuation being out of date and not including the buildings that loan was for in the first place!! 'Oh, they said, we haven't any money to lend anyone, not a penny, better find another Bank, and by the way since you've gone over your limit (which we told you to do) you are now a bad risk and we don't want to know you anymore, we want you off the books'. 4 years on I'm still with them, still climbing slowly out the hole they dropped me in, trying to expand, having to turn away business, lots of business, because I can't expand fast enough to meet demand, but its been hell. I communicate with my Bank Manager by email these days, he doesn't seem to want to speak, I see him once a year when he comes to renew the OD. The loan was fixed at 5% over base for the first 5 years (their advice) so I've been paying 9% on 200k. In July it goes variable so its up for renegotiation I guess. I wonder who will bet against it not staying at 9%? Their advice has cost me about 30k in extra interest I reckon. Utterly utterly useless. (I've deleted what I really think of them in the interest of public decency) Tried to move to NatWest 4 years ago , but the 15k was a deal breaker. Tried Clydesdale, their guy spoke the most sense of anyone I've met in Banking in all my years farming, but then he is an ex farmer himself, but they had no money to lend either. Barclays didn't want to know. So its a case of better the Devil you know. Oh, and there was also the 21k electricity bill dropped on me 2 years ago by British Gas who had estimated my bill for 3 years despite taking meter readings (and not used), and had underestimated wildly. That just took the biscuit. Still, onwards and upwards. Hey ho!
  • Thu, May 24 2012 11:04 In reply to

    Re: Overdraft arrangement fee

     Have two banks?

     

    Not for print please.
  • Thu, May 24 2012 12:17 In reply to

    Re: Overdraft arrangement fee

    If one Bank is sitting on the deeds to your farm as security against a large loan how do you manage to move half or some of your business to another Bank?
  • Thu, May 24 2012 19:41 In reply to

    Re: Overdraft arrangement fee

     

        Increased dividend, all on the overdraft.

     

        Good intentions.

  • Thu, May 24 2012 21:15 In reply to

    • AllyR
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    • Joined on Sun, May 22 2005
    • Scotland
    • Trusted Users

    Re: Overdraft arrangement fee

    freeranger:
    If one Bank is sitting on the deeds to your farm as security against a large loan how do you manage to move half or some of your business to another Bank?

      The other Bank would take on the loan and the deeds with it, would it not?
    When in Rome, do as the Romans do.
  • Thu, May 24 2012 21:19 In reply to

    • AllyR
    • Top 50 Contributor
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    • Joined on Sun, May 22 2005
    • Scotland
    • Trusted Users

    Re: Overdraft arrangement fee

    Sorry Freeranger, I didn't notice the "large" loan. As the payments to date are perhaps mostly interest  you could stand to loose a fair bit.
    When in Rome, do as the Romans do.
  • Thu, May 24 2012 21:25 In reply to

    Re: Overdraft arrangement fee

     Freeranger, just a thought but have you tried the AMC ?

    http://www.holidaycambriancoast.co.uk/

    http://www.cottages4you.co.uk/cottages/llechwedd-mawr-oq2
  • Fri, May 25 2012 9:37 In reply to

    Re: Overdraft arrangement fee

    welshnwilling No point in trying AMC, its part of LloydsTSB and the paperwork all goes through the same office in Andover apparently, and AMC terms are less generous by 10% in terms of lending power apparently, if I can put such a phrase in here, as LTSB.
  • Fri, May 25 2012 9:40 In reply to

    Re: Overdraft arrangement fee

    Mostly interest up until now yes, now I'm starting to eat into the capital so the balance owing should decrease by about 1k a month from now on.
  • Fri, May 25 2012 9:47 In reply to

    Re: Overdraft arrangement fee

    I'm told AMC will only offer 60% of the value of your security as a loan or OD facility, whilst LTSB will offer 70% just to make that point clear.
  • Fri, May 25 2012 14:48 In reply to

    Re: Overdraft arrangement fee

     

    freeranger:
    If one Bank is sitting on the deeds to your farm as security against a large loan how do you manage to move half or some of your business to another Bank?

    We split the land between lenders, as most of the capital is for the land.

  • Fri, May 25 2012 15:37 In reply to

    Re: Overdraft arrangement fee

    I can't, the loan was for 2 buildings and there is only 4 acres of land which the whole business and my dwelling stand on, with one entrance and a right of way through it too.
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