Capped Base Rate Loan

Our Capped Base Rate Loan provides certainty of a known maximum monthly payment, whilst benefiting from a variable rate.  It is linked to the Bank of England Bank Rate so the interest rate that you pay will change as the Bank Rate changes, but it will not go above the Capped Rate during the Capped Rate Period.  Capped Base Rate loans are less dependent on market conditions than Base Rate Loans, giving you confidence that you will be able to meet your financial obligations.

Features and benefits

  • Borrow from £50,001.
  • Choose a term from 5 to 25 years1.
  • Variable monthly repayments, Capped during the 5 year Capped Rate Period1.
  • Benefit from capital repayment holidays, available in certain circumstances.
  • Borrow on a secured or unsecured basis.
  • Read our charter to find out how we're committed to lending to businesses.

There is always a possibility that the total interest rate payable will not rise above the Capped Rate during the Capped Rate Period, in which case you may have unnecessarily paid more interest than if you had chosen a Base Rate loan with no Capped Rate feature.

Any early payment made during the Capped Rate Period will incur a Break Cost. Break Costs are defined at the outset of your loan, giving you certainty around the costs involved.

An arrangement fee of up to 1.5%2 applies and is related to the amount you borrow.

To enquire about this loan, you must:

  • Require the loan for business use.
  • Be a sole trader, partner or director with authority to borrow on behalf of your business.
  • Be aged 18 or over.

One of our relationship managers will be happy to speak with you about your enquiry. However, before you get in touch, please make sure you know:

  • How much you would like to borrow.
  • The purpose of the finance.
  • What time period you would like to make the repayments over.
Loans icon

Base Rate Business Loan

A loan with a variable rate that changes in line with the Bank of England bank rate.

Find out moreabout the Base Rate Business Loan

Loans icon

Enterprise Finance Guarantee

A government-backed scheme that helps businesses without sufficient security to borrow.

Find out moreabout the Enterprise Finance Guarantee

Loans icon

Commercial Fixed Rate Loan

Repay a consistent monthly amount for the entire length of your loan term.

Find out moreabout the Commercial Fixed Rate Loan

Loans icon

Loans and finance

Our lending products are flexible enough to accommodate almost any business plan.

Back to loans and finance

How to enquire

Enquire online

Completing our online enquiry form takes about 10 minutes. Once we receive it, we’ll contact you to discuss your business needs in more detail.

Enquire online

On the phone

0800 022 4378Call telephone number 0800 022 4378

Call us to talk to one of our relationship managers. We are available from 9am to 5pm Monday to Friday.

Loans icon

Finance selector

A convenient way to help you decide which of our finance options could be right for your business.

Launch selector