Interest Rate

An interest rate refers to a percentage charged on top of the total loan amount you borrow.

For example, if you borrow £100,000 and have an interest rate of 1%, you must pay 1% of that amount over a fixed period. 

You can pay the interest at the end of a loan term, otherwise known as rolled-up interest, or the lender can deduct the interest from the gross loan amount before you receive the funds, known as retained interest.


We use cookies. By using the website you agree with our use of cookies. For more information, please read our privacy policy.

Okay, got it!