The Swift Group has revealed it will not pass on the increase in the bank base rate to new borrowers applying for its range of secured loans, and will instead absorb the costs.
The recent bank base rate rise is the first in two years and some lenders have been quick to raise their secured loan rates in a knee jerk reaction.
John Webster, chief executive of Swift Group, says: This is the first rate rise that many new borrowers will have experienced and will come as a shock to some.
For the moment we have decided not to raise our rates in line with this base rate increase, which will be welcomed by our existing and new intermediaries. We will keep our position under review in the light of any further changes.
The secured loan market is vibrant and competitive and Swift has been a leading player for many years. We intend to ensure that this continues to the benefit of intermediaries and their clients.
Secured loans have become more important both in numbers and also in the way they fit within customers wider financial needs. We have enjoyed noteworthy growth in the business and are completing double the amount we did last year. I believe that this is a direct result of good products backed up with excellent service.