maybe a stupid question----contract rate

wanderingcat

Hi, everyone:j

My solicitor sent me the draft contract. I noticed the "contract rate: 4% above the base rate of barclays bank plc from time to time" have no idea what it is Anyone can help?

Cara79

I don't understand this and what it is referring to. Is it referring to your mortgage offer/contract? I guess that would explain 4% over the BoE rate - but that sounds very high indeed!

I'd check your mortgage offer and the KFI to see what you've signed up to.

If this does not relate to your mortgage, then I really have no idea what this is about.

x

wanderingcat

Cara79 wrote:

I don't understand this and what it is referring to. Is it referring to your mortgage offer/contract? I guess that would explain 4% over the BoE rate - but that sounds very high indeed!

I'd check your mortgage offer and the KFI to see what you've signed up to.

If this does not relate to your mortgage, then I really have no idea what this is about.

x

I don't think it relate to my mortgage.What I guess it should be a standard one in the agreement form. But cant understand wht it is

wanderingcat

Googled it. This is what I got:

The Law Society interest rate is set at 4% above Barclays Bank base rate. It is the "contract rate" referred to in the Standard Conditions of Sale.

no further explaination. What is this for? anyone knows?

[Deleted User]

If you don't pay your solicitor within their time frame, this will probably be the interest rate that will be applied to your bill, until such time as you settle the account.

This is fairly standard in business contracts to ensure prompt payment.

wanderingcat

Chibi wrote:

If you don't pay your solicitor within their time frame, this will probably be the interest rate that will be applied to your bill, until such time as you settle the account.

This is fairly standard in business contracts to ensure prompt payment.

OK, I see. Thanks Chibi:beer:

MegS

I think you'll find its actually the interest payable in the event either side default or in other words if one of you doesn't complete on the completion date (after exchange of contracts) then a notice to complete is issued, the interest payable is on any sums due on the completion date with interest set at 4% above the base rate. From issue of the notice to complete you have ten days in which to complete after which the contract is null and void with the deposit forfeited if you fail to do so.