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

Women and millennials help drive £17bn+ franchise sector to record levels

New research from NatWest and the British Franchise Association (bfa) highlights changes and profitability in the sector.

Winners announced for Skills & Opportunities Fund

52 winning organisations have been announced for round two of the 2018 Skills & Opportunities Fund.

RBS Multicultural Network meets Eric Holder, 82nd US Attorney General

Simon McNamara, RBS Chief Administrative Officer and Executive Sponsor of the RBS Multicultural Network, recently hosted an event in discussion with Eric Holder, the first black US Attorney General. They discussed career, ethnicity, diversity and even a little bit of politics. At the event, Eric Holder shared his wisdom and experience with attendees from the RBS Executive committee and RBS Multicultural Network. Simon McNamara blogs about his experience meeting Eric, a BAME role model, and why diversity is so important to RBS.

Set Tab for lightbox