Navigating Fixed and Variable Rates at Onate

When it comes to choosing the right financing solution for your needs, one crucial decision you'll encounter on your financing journey is whether to opt for a fixed or variable interest rate. Both options are on offer from Onate and they offer distinct advantages. Here are the benefits of each:

Fixed Rate: Stability in Uncertain Times

1. Predictability:

One of the key advantages of choosing a fixed interest rate with Onate is the predictability it provides. Your interest rate remains constant throughout the agreed term, offering stability and allowing you to understand your cash flow better on a monthly basis. This predictability proves invaluable in times of economic uncertainty, ensuring your financial commitments remain transparent and manageable.  You also have the peace of mind of not watching the European Central Bank announcements on the movement of interest rates and how this is affecting your loan. 

2. Shielding Against Market Volatility:

Fixed rates act as a shield against market fluctuations. If market interest rates rise, your fixed rate remains unchanged, protecting you from potential increases in your borrowing costs. This stability can be particularly advantageous in a rising interest rate environment which we have experienced over the past 18 months.

3. No breakage cost:

Typically fixed interest rates attract a breakage cost and this is often a deterrent for borrowers to fix their interest rate. We are excited at Onate to be in the position to offer a fixed rate with no breakage cost. This is a really borrower friendly aspect to our fixed interest rate offering.

Variable Rate: Flexibility for Dynamic Opportunities

1. Potential Cost Savings:

Variable interest rates are often initially lower than fixed rates, providing an opportunity for cost savings, especially during periods of stable or decreasing interest rates. This can result in lower monthly payments and increased cash flow, enabling you to allocate funds to other aspects of your project.

2. Capitalizing on Rate Cuts:

With a variable rate, you have the potential to capitalise on market fluctuations. If interest rates decrease, so does your borrowing cost, leading to reduced overall expenditure on your bridging finance. This flexibility can be advantageous for short-term projects.

Choosing the Right Fit for You

The decision between a fixed and variable rate ultimately depends on your financial strategy, risk tolerance, and the nature of your project. Onate is committed to providing tailored solutions that align with your needs.

Whether you prioritise stability and surety of the interest bill on a monthly or seek flexibility and potential cost savings, Onate offers both fixed and variable rate options, ensuring you have the freedom to choose the financing structure that best suits your goals.

The key to a successful financing strategy lies in understanding your options and aligning them with your vision. Consult with our experts at Onate to explore the most suitable bridging finance solution for your project, and embark on your borrowing journey with confidence and clarity.

For more information, please contact:

John Ring | john@onate.com | 0878305276

Michael Gavin | michael@onate.com | 0851454200