With interest rates sure to increase over the next year many borrowers are looking for fixed rates either on their new loans or their existing ones.  Once again the high street banks are not providing straight forward answers.

Borrowers with residential mortgages can easily find a fixed rate for which they qualify and which is suitable for them. A competent residential mortgage broker can soon sort out 95% of the enquiries they receive and some brokerages even offer applicants direct access to sourcing systems on their websites.

For borrowers on commercial property it isn’t so easy: it never is! As well as more complex underwriting, the terms offered by commercial lenders are less clear. Most of the high street banks, for example, will usually not tell you the rate at which the loan is fixed until a couple of days before you draw down. Moreover, to calculate the early repayment charge, if you redeem within the fixed rate period, you need both a degree in maths and a crystal ball.

The challenger banks and building societies who offer fixed rates are much easier to understand. Both the rate and any early repayment charge are clear even before you apply for the loan, and so they should be. Rates offered by these lenders may be slightly higher, but they aren’t always, so borrowers should not simply accept what their bank offers them, even if the bank does offers them a fixed rate.