Helping a Young Farming Family Grow with Flexible Second Charge Lending

At UK Agricultural Finance, we understand that growing a farming business doesn’t always fit neatly within traditional lending criteria. That’s why we’re pleased to offer greater flexibility through our ability to provide additional lending using a second charge alongside an existing first charge facility.

This approach allows us to support ambitious farmers who need extra funding to seize opportunities without requiring a complete refinance or waiting until they qualify for more conventional long-term lending.

The Challenge

A young couple in their 30s, based in Lincolnshire, approached broker Daniel Barnard of Rural Finance looking to secure funding to purchase an additional 11 acres of agricultural land adjoining their existing holding.

Both borrowers work full-time in stable public sector roles while also running a growing beef enterprise. Their farming business currently consists of a herd of around 25 cattle alongside hay and haylage production, with ambitions to increase livestock numbers and diversify into sheep once the additional land had been acquired.

Although the business generated some limited farming income, affordability relied significantly on their employed income, making the proposal more challenging for some lenders.

The Solution

UK Agricultural Finance provided a loan of approximately £90,000 over an 84-month term.

The facility comprised:

• Approximately £80,000 secured by a first charge.
• The remaining balance provided through a second charge facility.

This flexible structure enabled the borrowers to secure the funding required to complete their land purchase while maintaining an affordable repayment profile.

The security included:

• Two existing parcels of agricultural land extending to a little under 6.5  acres, including grassland, agricultural buildings and a cattle shed.
• The newly acquired 11 acre parcel of Grade 3 arable land with direct road access.

While part of the existing security lies within a Flood Zone this reflected the characteristics of the local area. As the land is predominantly grassland with minimal cropping, UK Agricultural Finance did not consider the flood risk to be a material concern.

Looking Ahead

The additional land provides the borrowers with the opportunity to:

• Expand their existing beef herd.
• Introduce a sheep enterprise to diversify income.
• Improve the long-term profitability and resilience of the business.

As the farming business continues to develop, the borrowers may choose to refinance onto a longer-term lending solution once stronger financial accounts have been established. In the meantime, the term loan provides the flexibility needed to support their next stage of growth.

Why UK Agricultural Finance?

This case demonstrates how UK Agricultural Finance is willing to look beyond standard lending criteria to support the next generation of farmers.

By taking a pragmatic view of both employed and farming income, and by utilising a combination of first and second charge lending, we were able to help an ambitious young couple secure additional land that will underpin the future growth of their business.

For farmers looking to expand, diversify or invest in their future, flexible lending structures can make all the difference—and our ability to offer second charge lending provides another valuable option when traditional funding routes may not fully meet their needs.