Changes to PWLB lending rates

Last week a whole percentage point increase in the rate of borrowing from the Public Works Loan Board (PWLB) with immediate effect was announced.

The move has increased the rate for a PWLB 50-year new maturity loan from 1.81% to 2.82% overnight.

This restores interest rates to levels available in 2018, by increasing the margin that applies to new loans from the PWLB by 100bps (one percentage point) on top of usual lending terms.

The statement said the government will monitor the impact of the change and keep its rates policy under review.

Councils currently looking to take out a PWLB loan are advised to check the PWLB website for an updated estimate of repayments.

Posted: Tue, 15 Oct 2019 09:48 by Wendy Amis

Tags: Council business, Finance and Audit