Interest Rates

The Optimum Base Rate (OBR) is currently 0.5%. 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.

Changing the Interest Rate

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

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 of our General Mortgage Conditions 4.3 to 4.4 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 finance to allow us to make loans,
  • 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 5 working days’ notice of the change. If we wish to change the Monthly Payment, we must first give you at least 28 days’ notice of the changed amount. The notice will say when you must start paying the changed amount.