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Thanks for your enquiry.
Provided your Son will not be getting any other secured loan to help finance his purchase, you are free to negotiate between yourselves how long your Loan is to be repaid over and the yearly interest rate.
The majority of High Street Bank Mortgage rates at present are around 3.5- 4.8%.
You both really need to sit down and agree what you are prepared to offer and what he is prepared to pay, but a rate of 5-6% would not be unreasonable for you to ask.
Please let me know if you require any further clarification.
If not, I would be grateful if you could leave positive feedback.
thank you for your response will I be governed by the consumer credit regulations?
Provided the Loan is in your personal name, you won't be governed by any such regulations.
Does this mean that I am free to charge what rate I wish to.
It will be a first charge does this make any difference
You are indeed entitled to charge whatever interest rate you want (provided your Son is obviously happy to pay the specified rate!)
Is it because I am not a lending institution that I would not be governed by the consumer credit regulations.
You are quite correct!
Private individuals are free to agree between themselves the rate of interest payable.
Thank you for your help
I'm glad I have been able to help.
All the Best