Interest rate reviews

Our interest rates are subject to regular review, including an annual independent benchmarking exercise.

Findings

Every year we will commission an independent expert to review our fees and interest rate policy and practice to ensure they remain in line with the market and are applied fairly and consistently.

The latest independent pricing review sampled 14% of all transactions completed in 2018 and benchmarked rates and fees against market comparators.  This review identified:

  • 86% of companies funded were at or below the market for interest rates.
  • 97% of companies funded were at or below the market rate for arrangement fees.
  • The average interest rates charged on each fund benchmarked favourably with market comparators.
  • Arrangement fees benchmarked 'were significantly below' market comparators.
  • 56% of the transactions sampled could not have accessed finance from the private sector.

For the Financial Year 2019/20, we are changing our pricing procedures so the independent pricing review will inform interest rates and arrangement fees on our loans for the coming year.