1 Variable rate – you pay an agreed interest rate margin, which is added to reference rates such as the Bank of England Base Rate or a RFR. This allows you to benefit if interest rates fall, but could leave you exposed to increased repayments if rates rise. If the loan is repaid early, a prepayment fee may be payable
2 Fixed rate – you have a fixed payment amount so you can be sure of the amount of your repayments for the fixed term.
If the loan is repaid early, a prepayment fee will be payable and if you prepay the loan within a fixed rate period, you will also have to pay a fixed rate break fee. The maximum fixed rate period of a facility is 10 years
3 Deferring capital repayments will increase the total interest charged and therefore the total amount payable over the full term of the loan. Following a capital repayment holiday, your repayments will be higher to ensure your loan will be repaid by the end of the term.
4 Variable debit interest is payable on your loan and tracks the Bank of England Base Rate. If the Bank of England Base Rate falls below zero, we will treat it as zero.
5 £1m is the minimum amount available for variable, non-sterling currencies and RFR linked loans. Availability is subject to eligibility criteria and only available to businesses with turnover of £25m or above. If the RFR for any day for any interest period is less than zero, the RFR for that period shall be deemed to be zero.
