news updates.
Latest fixed rate deals
I try to keep you updated with the latest products around in the market and I recently obtained some commercial fixed rate quotes from a lender that I thought were quite interesting;
- 2 year – 2.25% + Margin
- 3 year – 2.50% + Margin
- 5 year – 2.85% + Margin
- 7 year – 2.95% + Margin
- 10 year – 3.1% + Margin
In this instance, we were looking at a Healthcare deal of £1,200,000 on a purchase price of £1,700,000 (or about 70%) and the quoted interest rate margin was 2% above Base Rate.
What I find interesting about these rates is that whilst the trend is obviously upwards the further out you go, this wouldn’t seem to match some expectations of sharp interest rate rises that are likely to come further down the line with inflation caused by the Bank of England’s policy of Quantative Easing. In particular, the 7 year fixed money at circa 4.95% looks like it could represent good long term value, especially given the historical UK average of Base Rate.
David Stephen Partners are experts at sourcing commercial funding for business and remain a no-fee brokerage. To discuss how we might help you in sourcing cost effective funding please do not hesitate to contact us.
David Burrows
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by David Burrows
(Partner, DSP Group)
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