Fixed Rate Loans

What are Fixed Rate Loans and Tailored Business Loans?

Fixed Rate Loans or TBLs are a type of financial product designed to fix the interest rate at a certain level, providing a degree of certainty for the individual or business with regards to their repayments.

In order to fix the interest rate the Bank is required to hedge its own position. Typically it will enter into some form of third party trade, in order to be able to offer funds to its customer at a fixed rate.

The problem with Fixed Rate Loans and TBLs

We know that Fixed Rate Loans and TBLs can be misrepresented as simple agreements, which is not the case. Lenders often fail to explain the associated breakage costs that can occur in a low interest rate environment, which can run into the hundreds of thousands of pounds.

Individuals and businesses can then find themselves locked into high interest rate agreements, unable to refinance due to the undisclosed substantial breakage costs.

Have you been mis-sold a Fixed Rate Loan or TBL?

Our banking and finance lawyers are aware that many of the large banks have mis-sold these products, and have acted against a number of the major UK banks.

It may be difficult for you to determine whether you have a Fixed Rate Loan or TBL. However, if your breakage or exit costs are over 1% of the loan amount, then it is possible that your loan may have been mis-sold.

How we can help

In obtaining successful outcomes for our clients, we have already recovered over £30 million in relation to mis-sold Fixed Rate Loans, TBLs and Interest Rate Hedging Products.

Our lawyers have the knowledge and expertise to review your Loan Agreement and to advise on the most appropriate steps to take. We will always consider your individual circumstances to provide tailored advice at an affordable cost, be it on a ‘No Win No Fee’ basis, or with the assistance of appropriate after the Event Legal Insurance.