What do the BoE interest rate increases mean for borrowers?
Over the last months, there have been numerous announcements by the Bank of England increasing the base interest rate, and more are likely to happen in the near future. But what do the BoE interest rate increases mean for you?
Our view is that the increase in interest rates may well mean that challenger banks become a more attractive option for many borrowers. We have already seen this in some of the rates that are available today. Whilst we don’t want to say any specific names, a traditional high street bank is generally offering fixed rates that are now close to 7%, but challenger banks have options quite a bit below this. With that said, if you want a variable rate, a high street bank may well be the cheaper option. Knowing where to go for your commercial finance is even more important when options are more expensive.
Where does that leave borrowers?
When the cost of borrowing funds from a lender gets more expensive as we are seeing with the recent interest rate increases, it’s even more important to borrowers that you are getting the right deal available to suit your needs. Having a commercial broker on your side who knows where to go, has a panel of lenders to choose from, and has the skills and professional relationships to back it up, it’s even more important to use one. Commercial brokers can make a large difference to borrowers in the total cost of borrowing, so get in touch with your local ASC office today for a free initial consultation and to assist you in finding the right finance for your project.
We don’t work for the banks; we work for our clients.