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Latest fixed rates
I just received the below fixed rate quotes from one of the Healthcare lenders that we work with and I thought you might be interested to see the current price of fixed rate monies in the market;
| 1 Year | 1.85% + Margin |
| 2 Year | 2.20% + Margin |
| 3 Year | 2.55% + Margin |
| 4 Year | 2.80% + Margin |
| 5 Year | 2.95% + Margin |
| 6 Year | 3.00% + Margin |
| 7 Year | 3.05% + Margin |
| 8 Year | 3.10% + Margin |
| 9 Year | 3.15% + Margin |
| 10 Year | 3.20% + Margin |
The best margin in the market that we have seen lately is around 2% above cost of funds, so anything sub 5-years at the moment is below 5%. When you compare this with funds linked to Base Rate (0.5%) or 3-month LIBOR (1.43% today), variable rate money is still substantially cheaper. Most of the projections that I have seen say that Base Rate is likely to stay at the current level until at least the end of 2010 but there is also the spectre of inflation caused by QE which could cause an inflationary problem that may need to be tempered by quite sharp rises in Base Rate. This may be a reason to fix at around 5-5.20% for the long term
David Stephen Partners are specialist commercial finance brokers. If we can assist you in securing funding on a purchase or refinance that you may be considering at present, we would be delighted to assist you.
David Burrows
View David's Profile
by David Burrows
(Partner, DSP Group)
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