You should read this together with the Second Charge Mortgage Offer sent to you prior to completion and our current General Mortgage Conditions which are available here.
Other than during a Fixed Rate Period the Interest Rate will be a variable rate that is, or is linked to, Optimum Base Rate (“OBR”) specified in the Offer and that we control. We may vary the Interest Rate by varying the OBR in accordance with the Offer and Condition 4 of the General Mortgage Conditions.
We may reduce the OBR for any reason without giving you notice first. If we do not give you notice before the reduction we will do so as soon as possible afterwards, telling you when the change takes effect.
As well as our rights under Condition 4.2 and the provisions of Condition 16.3 of the General Mortgage Conditions, we may increase the LBR to reflect any one or more of the following:
- Changes to the cost of raising the finance to allow us to make loans. These costs will typically be linked to changes in the rate (or rates) used for lending by banks and other financial institutions to each other;
- Changes in the Bank Rate of the Bank of England (or any successor to it);
- Changes in our administrative or other costs in providing loans or running our lending business that are beyond our reasonable control; or
- Changes in legal or regulatory requirements or guidance, or new decisions of the courts or Ombudsmen.
Any increase in the OBR will be proportionate to the reason(s) for the increase.
On each occasion that the Interest Rate changes we will give you at least 7 days’ notice of the change.
If we wish to change the Monthly Payment, we must first give you at least 14 days’ notice of the changed amount. The notice will say when you must start paying the changed amount.
Please contact us if you require further details.