Apologies if this has been discussed before (in which case delete or merge this) but I can't see anything on it.
I'm just curious as to what the different lenders' mortgage contracts say about variable rates? I have a BoI offer letter and contract (which was for two years on a fixed rate thereafter defaulting to variable) and it says this:
Is this standard stuff?
Could it be argued that this is an unfair contract?
I think that this is one of the two prongs of the IMHO/Ross Maguire court challenge to specific (?) mortgage contracts?
I'm just curious as to what the different lenders' mortgage contracts say about variable rates? I have a BoI offer letter and contract (which was for two years on a fixed rate thereafter defaulting to variable) and it says this:
PART 5 - THE GENERAL CONDITIONS
...
6. Variable Interest Rates
(a) Subject to clause 6(c), at all times when a variable interest rate applies to the Loan the interest rate chargeable will vary at the Lender's discretion upwards or downwards.
...
(c) Notwithstanding anything else provided in this Offer Letter, the varied applicable interest rate shall never, in any circumstances, be less than 0.1% over one month's money at the Euro Inter Bank Offered Rate (EURIBOR)
Is this standard stuff?
Could it be argued that this is an unfair contract?
I think that this is one of the two prongs of the IMHO/Ross Maguire court challenge to specific (?) mortgage contracts?
Last edited: