Article 4 Rates of interest

This article applies to any mortgage transferred by article 2 other than a mortgage in respect of which the rate of interest cannot be varied.

Where the rate of interest applicable to the mortgage immediately before the transfer date is higher than the rate applicable to a mortgage of the same description granted to Richmond (“the Richmond rate”), the rate applicable to that mortgage on and after the transfer date shall, until such time as a different rate falls to be applied in accordance with Schedule 16 to the Housing Act, be the Richmond rate.

Where the rate of interest applicable to the mortgage immediately before the transfer date is lower than the Richmond rate, that lower rate shall continue to be applicable to that mortgage on and after the transfer date until such time as —

whichever first occurs; and thereafter the rate applicable to that mortgage shall be the rate determined in accordance with Schedule 16 to the Housing Act.