However, some HP deals have a balloon payment at the end of the deal, normally higher than your usual monthly repayments. When a consumer returns defective goods, he is entitled to a refund of all measurements paid, because in this situation the rights of consumers are the same as if the goods were purchased directly. The interest rate on HP contracts varies by financial company. Interest is calculated at a fixed rate on the total amount you borrow for each year of the agreement. Since the interest rate is set for the duration of the contract, you usually can`t increase your repayments every month if you wish. If you wish to extend the term, you may be charged a rebooking fee. .