You must pay any costs associated with setting up a loan under the Pension Loans Scheme.
Costs can include legal fees.
We’ll send you a letter once the loan has commenced. This letter will tell you the costs you must pay. You can pay them straight away or we can add them to your outstanding loan balance. If we add them to the loan balance they will attract interest charges.
We currently charge 5.25% compound interest on the outstanding loan balance.
We add interest to the outstanding loan balance each fortnight until you repay the loan fully. The longer you take to repay the loan, the more interest you pay.
The outstanding loan balance is:
- the amount you borrow from us, plus
- interest, plus
- any costs, minus
- any repayments you made
We regularly review your loan payments.