10 July 1998

AMC capped-rate loans

LOANS with a capped interest rate were launched at the show by the Agricultural Mortgage Corporation to counter uncertainty in the run-up to European monetary union and beyond.

The offer applies to loans for 10 years or more, said the AMCs Mike Townsend, and sets an interest rate ceiling of 8% from year six to 10 of the period.

"The customer can negotiate a fixed-rate loan at a competitive interest rate for the first five years, and at the end of the fifth year negotiate a rate for the following five years. But he is secure in the knowledge that rates for the second five-year period cannot exceed 8%." This, and all other AMC loans currently available in sterling, will be offered in euros from next January, with interest charged at the prevailing euro interest rate, he added.

The company also launched a new high-interest cheque account from AMC Bank, a marked departure from its established lending business.

Annual compound interest is currently 6.92%, though the rate is variable. A minimum deposit of £5000 is required. &#42