The Board's interest rates are determined by HM Treasury in accordance with section 5 of the National Loans Act 1968. In practice, rates are set by the DMO on HM Treasury’s behalf in accordance with agreed procedures and methodologies which are described in a DMO Technical Note last updated on 9 October 2019.
From 1 November 2012, the Government introduced the Certainty Rate which reduced the PWLB standard interest rate by 20 basis points (0.20%) on loans from PWLB to principal local authorities who provide information as required on their plans for long-term borrowing and associated capital spending.
From 11 April 2018, the Government introduced the Local Infrastructure Rate which applies an interest rate of the gilt yield plus 60 basis points (0.60%) for lending to support nominated infrastructure projects that are high value for money.
More information on these rates is available on the Concessionary Rates page.
Fixed interest rates are based on gilt yields and are published twice a day, at 9:30am for start of business and 12:30pm. DMO reserves the right to make additional, unscheduled intra-daily rate changes as necessary.
There are two sets of rates. The 'new loan' rates apply to new advances while the 'premature repayment' rates apply to loans being repaid early. Rates for new loans can be at the PWLB Standard Rate or a Concessionary Rate, whereas there is only one type of rate for premature repayments.
|Current Fixed Rates: xls/PDF/doc|
|Historical Fixed Rates (1 April 1994 to previous business date):|
Information about National Loans Fund (NLF) Interest Rates and Acquisition of Land Compensation Rate are available on this website.
Variable interest rates are published at 9:30am each day for one, three and six months, as appropriate.
|Current Variable Rates|
|Historical Variable Rates for loans agreed from 3 October 2000: Historical Variable Rates (XLS)|
|Historical Variable Rates for loans agreed from 7 August 1985 to 2 October 2000: Variable Rates 1985 - 2000 (XLS)|
In the past, two sets of rates were determined: Higher quota rates and Lower quota rates. Each set applied both to new loans and premature repayments as appropriate. Higher quota rates, from 1 April 1994 until they were discontinued with effect from 1 April 2004, are available below.