The ‘loan’ or deferred amount will have interest charged on it in the same way a normal loan would be charge on money borrowed from a bank. East Riding of Yorkshire Council’s deferred payments will follow the interest rate as set by Government and these will be adjusted on the 1st January and 1st July each year. As of 1st July 2019 the interest rate charged is 1.45%.
This interest is known as compound interest and will be calculated on a daily basis.
An administration fee of £204.00 is charged at the start of the agreement and will be added to the deferred amount.