Interest rates can be up to 1% above the Bank of England (BoE) base rate. However, if the interest is more than 1% higher, then the agreement becomes a commercial agreement and needs additional clauses that are in line with the Consumer Credit Act. Late payments may be subject to a maximum interest rate of up to 4% above BoE base rate. In November 2022 the base rate was 3%, the highest rate was 4% on a personal loan and 7% on a late repayment.