Interest rate cuts for business and first time buyers

Interest rate cuts for business and first time buyers

Funding for Lending has allowed RBS to cut interest rates on loans to small businesses to as low as 3 percentage points, and cut the cost of borrowing for first time homebuyers.

The early results are encouraging and helped net lending from RBS's Core bank increase by £412m. We will continue to offer these attractive rates to send a clear message that RBS is open for business.

Core net Lending

Net lending from core RBS to businesses and households for Jul-Sep increased by £412 million. This compromises:

  • Core net lending to households of £136m
  • Core business net lending of £160m
  • Invoice and Asset financing of £117m(not included in BoE reported numbers)
  • A further £1.3bn has been offered to businesses and is waiting to be drawn down by customers

RBS non-core rundown

RBS figures as published by the Bank of England include planned loan runs offs in commercial property as well as other non core risk concentrations of £937m which offset the positive net lending to our target Core customers.

Funding for Lending Scheme

RBS has used the FLS scheme to cut interest rates on SME lending by up to 1.7%, as well as removing arrangement fees.

  • This has saved our customers on average £4,500 on the cost of their loan
  • RBS in on track to deliver the full £2.5bn of SME FLS funding by February 2013
  • In Q3 2012 3,700 customers benefited directly from the 90% FTB FLS offer

YTD lending

  • Gross new lending to UK businesses totalled £62.9bn in the first nine months of 2012, of which £28.6bn was to SME customers
  • In Q3 gross new lending increased 3% compared with Q2

Latest news

RBS to help 2.5 million people each year to be more financially capable

RBS has today committed to helping 2.5 million people in the UK each year to improve their financial capability.

RBS to increase lending to sustainable energy sector following £1.1bn securitisation of loans to UK sustainable energy market

RBS has executed a £1.1bn securitisation deal with Macquarie Infrastructure Debt Investment Solutions (MIDIS), which will allow the bank to recycle capital and increase lending to the sustainable or renewable energy sectors.

RBS launches £1 billion Female Entrepreneurship Funding and announces targets to help create at least 50k new businesses by 2023

RBS has today announced a new £1 billion in funding through NatWest to support female entrepreneurs in the UK to scale and grow – the largest intervention by a UK lender focused specifically on female-led businesses.

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