All about interest

We offer both variable and fixed rate interest options for our Standard Loan.

Variable interest

• A variable interest rate changes with the Bank rate set by the Bank of England. We charge a margin above that rate.
• Variable rates can go up or down in line with movements in the Bank rate.
• For the avoidance of doubt, if at any time this calculation would result in a negative rate, the interest rate for the applicable period shall be deemed to be zero.

Fixed interest*

• A fixed interest rate is a combination of the money market rate (i.e. the rate AMC has to pay) and our margin.
• Fixed rates are set for an agreed period – either the whole term of the loan or a shorter period. The actual rate is the one quoted on the day of completion.
• Fixed rates give you an advantage if Bank rates rise, but can mean you pay a higher rate if the Bank rate goes down.
• If you want to pay off a fixed rate loan early, you may have to pay a redemption fee, which could be substantial. If you are considering repaying your loan, please contact us for information on possible redemption fees.

How much will I pay?

We calculate interest daily, on the capital outstanding on that day. Any capital repayments are applied immediately to the account.

• Standard Loans – you can choose to be charged monthly, quarterly or half-yearly on dates that suit your business. 

Payment is due 17 days after the charging date. This means that when your statement arrives, you have 14 days' advance notice of the amount due.

Use the handy Mortgage and Loan Calculator to work out what your payments might be. 

Repayment or interest-only?

• With a repayment loan, you pay off some of the capital along with the interest due. At the end of the loan term, you will have repaid the full loan amount.
• With an interest-only loan, you make a regular repayment amount throughout the agreed term, but must then pay off the full capital at the end of the loan term.

There’s no requirement for you to purchase life/endowment cover or payment protection for your interest-only loan, but you do need to be sure you will have the funds to pay back the capital.

Applying for a loan

View details of the application process and the documents you will need, as well as answers to frequently asked questions.

* There is always a possibility that interest rates may go down leaving a fixed rate loan at a higher level compared to a variable rate loan. However, if interest rates rise, a fixed rate loan will remain at the same rate.