interest rate long term

[michelem]

Hi can any one advise me please - i am going to be paying part of my fathers mortgage - �100 per month for the forseeable future - we are having a legal document drawn up - however we need to know what sort of interest rate we add. Many thanks

[anniebird]

You could use the rate that your father is being charged by the mortgage company or Bank Base Rate or the rate that you would receive from a savings account. Do not forget that you will be liable for Income Tax on any interest paid to you by your father.

[Uzoma]

Are you able to clarify your question? Is he borrowing the �100 a month from you and then you want him to repay it with interest? In that case, you would decide the cost and the interest yourself. For example, if you would have received 2.5% interest by adding the money to your savings account, you would charge this. Or, if you would be charged 16.9% interest for borrowing the money off your credit card, you could then charge him that amount and any other fees you would normally incur. However, if you expantiate a little, I may be able to explain further.

[michelem]

Thank you both very much - you have helped me xx