Octane Capital says 85% of its offers have been issued on a fixed-rate basis since the specialist lender introduced the option in July.
The lender says the take-up reflects growing demand from property investors and developers for certainty over borrowing costs as swap rates remain elevated.
Its analysis shows the one-year swap rate has averaged 4.25% during 2026 to date, compared with 4.15% over the equivalent period last year.
The increase has been greater for five-year swaps, which have averaged 4.38% this year compared with 4.10% during the same period of 2025.
SWAP RATES RISE
Octane’s analysis also shows swap rates have continued to increase since its fixed-rate option was introduced.
The average one-year swap rate has risen from 4.33% during the period immediately before the launch to 4.49% since – an increase of 0.17 percentage points.
Five-year swaps have increased from an average 4.45% to 4.74%, up 0.29 percentage points.
Octane says greater certainty over finance costs can be particularly valuable for property investors and developers managing refurbishment or construction costs, project timelines and refinancing or sales exits.
COST CERTAINTY
Jonathan Samuels (pictured), chief executive officer of Octane Capital, says: “When we introduced fixed rates in July, we did so because we felt borrowers were placing an increasing value on certainty and the response has been pretty emphatic, with 85% of our offers since then going out on a fixed-rate basis.
“That preference is understandable given the persistent uncertainty surrounding the wider rate environment and the continued upward movement we’ve seen in swap rates.”
He adds: “A fixed rate removes one of those variables. It’s not about trying to second-guess where rates will go next, but giving borrowers certainty over their cost of finance from day one so they can plan accordingly.”
