Regulation 13 Standard rate to be applied under regulations 11 and 12

The standard rate is the average mortgage rate published by the Bank of England which has effect on the 5th April 2018.

The standard rate is to be varied each time that paragraph (3) applies.

This paragraph applies when, on any reference day, the Bank of England publishes an average mortgage rate which differs by 0.5 percentage points or more from the standard rate that applies on that reference day (whether it applies by virtue of paragraph (1) or by virtue of a previous application of this paragraph).

The average mortgage rate published on that reference day then becomes the new standard rate in accordance with paragraph (5).

Any variation in the standard rate by virtue of paragraphs (2) to (4) shall come into effect at the end of the period of 6 weeks beginning with the day referred to in paragraph (3).

At least 7 days before a variation of the standard rate comes into effect under paragraph (5), the Secretary of State must arrange for notice to be published on a publicly accessible website of—

For the purposes of this Regulation—

• “average mortgage rate” means the effective interest rate (non-seasonally adjusted) of United Kingdom resident banks and building societies for loans to households secured on dwellings, published by the Bank of England in respect of the most recent period specified for that rate at the time of publication; and

• “reference day” means any day falling on or after 6th April 2018.