Optimum credit

Interest rates

All information correct at :

21st April 2019 9:24 pm

Optimum Base Rate (OBR) is currently :

0.75%

Details concerning how your interest rate may change, where your account number starts with a 2, can be found below and by reading the relevant sections of the General Mortgage Conditions booklet.

For accounts previously regulated under the Consumer Credit Act, where your account number starts with a “1”, please refer to your Loan Agreement, for information regarding how your interest rate may change or contact us for details.

You should read this together with your Second Charge Mortgage Offer sent you prior to completion and our General Mortgage Conditions which are available by following this link.

Unless you are in a Fixed Rate Period the Interest Rate will vary in accordance with the Offer and Condition 4 of our General Mortgage Conditions. If you are in a Fixed Rate Period, the Interest Rate will not vary during the Fixed Rate Period.  On the expiry of the Fixed Rate Period the Interest Rate will change as stated in the Offer and thereafter will vary in accordance with Condition 4 of our General Mortgage Conditions.

We may change the Interest Rate for any of the reasons stated under conditions 4.3 to 4.4 of our General Mortgage Conditions or where the Offer otherwise provides for the Interest Rate to change.

We may reduce the Interest Rate, 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 took effect.

As well as our rights under Conditions 4.2 to 4.3, and the provisions of Condition 16.3.4 of our General Mortgage Conditions, we may increase the Interest Rate to reflect any one or more of the following:

  • Changes which occur, or which we reasonably anticipate may occur, in our costs of funding our business, including the cost at which we raise(d) finance to allow us to make loans. These costs will typically be linked to changes in the rate used for lending by banks and other financial institutions to each other. Our costs are currently based with reference to the London Interbank Offered rate for deposits of 1 month duration as published at the ICE website (LIBOR). We will typically assess our cost of funds by looking at the LIBOR rate each month (we currently do this on or about the 10th of the month) and, if the rate of LIBOR has changed by more than 15 bps from what it was the previous month, we will change the Interest Rate (and this could involve a reduction or an increase as applicable). This is our current policy but it may change to reflect reasonable changes in our funding costs or model, or changes in available interest rates (for example if LIBOR is no longer published we will use the nearest equivalent successor to it which reflects our cost of funding). We will tell you if our approach changes,
  • changes in other costs affecting our business which are outside our reasonable control,
  • changes in legal or regulatory requirements  or guidance, or  new decisions of the courts or Ombudsmen,
  • to ensure that our business is operated prudently, efficiently and competitively.

Any increase in the Interest Rate 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 will give you at least 28 days’ notice of the changed amount. The notice will say when you must start paying the changed amount.

Optimum Credit - Second Charge Mortgages for homeowners

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