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.
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:
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:
A loan with a variable rate that changes in line with the Bank of England bank rate.
We want you to find a product that's right for your circumstances, which is why we adhere to the Standards of Lending Practice, which are monitored and enforced by the Lending Standards Board.
To find out more you can read the statement of responsibilities, which details what's expected of us, the lender and you the borrower.
ANY PROPERTY GIVEN AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR OTHER DEBTS SECURED ON IT.
Overdrafts are repayable on demand.
All lending is subject to a satisfactory credit assessment and we will need your permission to carry out a credit check on you and your business.
You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.
1The “Capped Rate” applies for a Capped Rate Period of five (5) years, and this may be equal to or less than the full term of the loan. If the term of the loan is for longer than the Capped Rate Period, then from the end of the Capped Rate Period, the loan will no longer have the protection of the Capped Rate and will be subject to the full impact of any movement in the Bank Rate with no maximum interest rate protection.
2An arrangement fee will apply and is related to the amount you choose to borrow. These terms will be discussed with you before you take out the loan. To cover our administration costs for smaller facilities, there will be a minimum scale charge of between £100 and £250 resulting in the overall charge being more than 1.5%.
Calls may be monitored or recorded in case we need to check we have carried out your instructions correctly and to help improve our quality of service.
Lloyds Bank plc Registered Office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales no. 2065. Telephone: 020 7626 1500.
Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.
Eligible deposits with us are protected by the Financial Services Compensation Scheme (FSCS). We are covered by the Financial Ombudsman Service (FOS). Please note that due to FSCS and FOS eligibility criteria not all business customers will be covered.