delay completing contract, what interest rate should be charged?

[grackal]

In relation to failure to pay a contract price on the closing date and interest becoming payable as a penalty, is it the norm for an overdraft rate to be stipulated as the interest rate or would it normally be a lower current account rate?

 

[mf1]

What does the Contract state?

In general it will be a penal rate - its meant to hurt.

mf

 

[geld]

When we bought a new build, we signed contracts in Oct 05 and moved in in April 07...interest rates had gone up a LOT by then and we were charged the rate that was current in April 07, even though we were made a bank mortgage loan offer in Oct 05, it was the rate applying in April 07 that applied. Fortunately we had decided against taking the max being offered in Oct 05, so were able to absorb the additional 450 euro/month on the mortgage by April 07.

 

[rmelly]

When we bought a new build, we signed contracts in Oct 05 and moved in in April 07...interest rates had gone up a LOT by then and we were charged the rate that was current in April 07, even though we were made a bank mortgage loan offer in Oct 05, it was the rate applying in April 07 that applied. Fortunately we had decided against taking the max being offered in Oct 05, so were able to absorb the additional 450 euro/month on the mortgage by April 07.

OP's question has nothing to do with mortgage.

 

[grackal]

Er, thanks geld.

Mf1, the contract states the rate is a specific banks overdraft rate, so it looks like thats that.