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Rural Mortgages Philip Coysh, Director, FAF - The Rural Mortgage Specialists

Rural Mortgages Philip Coysh, Director, FAF - The Rural Mortgage Specialists. The RBS Intermediary Roadshow. Bucking the trend with rural mortgages - broker opportunities in the rural sector. Market. Farmers’ optimism But tempered by increasing costs of production –

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Rural Mortgages Philip Coysh, Director, FAF - The Rural Mortgage Specialists

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  1. Rural Mortgages Philip Coysh, Director, FAF - The Rural Mortgage Specialists The RBS Intermediary Roadshow

  2. Bucking the trend with rural mortgages - broker opportunities in the rural sector

  3. Market • Farmers’ optimism • But tempered by increasing costs of production – e.g. feed, fertiliser & fuel • Reinvesting in their businesses • buying more land • diversifying • purchasing more machinery – up 15% yr on yr

  4. Assets • Industry debt < 8% of assets • Low bad debts / provisions • Lending to Ag has risen to £10.6bn - rise of 9.1% yr on yr • Higher input costs partly responsible but also long-term borrowing for extra land, diversification projects, etc

  5. Farmland value Source: RBS Agricultural Office

  6. National growth

  7. Regional farmland value

  8. Objections • Overcoming Objections • Market too specialised • Existing banks too keen

  9. Opportunities • Farmers looking at new sources of income • Barn conversions • Equestrian • Storage • Rural leisure (eg quad bikes, fishing, etc) • Off-farm investment • FAF’s Equity Release Scheme

  10. Opportunities • Restructuring opportunities • Expansion • Increase land holding • Increase size of herd • Change farm system • Organic • Selling direct • etc

  11. Private investors

  12. Ordinary people • Non farmers – greatest opportunity for brokers? • Not just ‘City bankers’ – not anymore anyway! • ‘Ordinary’ people looking for change of lifestyle, etc

  13. Risk Assessment Serviceability Quality of the business Quality of the individuals Quality of the security

  14. Why FAF? • Why FAF? • Well established brand (est 1977) • Focus on introducer/broker market • Specialist rural lender • Small team but part of RBS group • ‘Open for business’

  15. How to contact us Philip Coysh Director, FAF FAF – the Rural Mortgages Specialists Mobile: 07850 242805 E-mail: philip.coysh@rbs.co.uk

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