The BLG Development Finance interest base rate increased to 0.75% (from 0.5%) with effect from 3rd August 2018.
To help our property developer customers understand the change, we have provided a Frequently Asked Questions guide:
Why have interest rates increased?
BLG are responding to increases in the base lending rates as determined by the Bank of England.
Does this effect all BLG loans?
BLG Loan Agreements generally reference interest as “a [given percentage] above the Base Lending Rate”. All such loans will be affected by this change.
If your Loan Agreement has the interest charge expressed in another fashion, you have other questions, or you are unsure how these changes affect you, please speak with your Regional Director or member of the BLG Credit Operations Team.
As a BLG customer, will I be advised on interest base rate increases?
Yes, we inform our borrowing customer of interest base rate increases in writing.
I have a loan offer from BLG that I have not yet accepted, will it be withdrawn?
No, loan offers issued remain valid until their expiry date. When you draw down the loan, the interest will be charged at the specified rate above the base lending rate at the time of drawing down.
If you have any other questions regarding this interest base rate increase, we are happy to help, please feel free to contact us on 0845 465 6500.