Rent Act 1977

1 (1) This paragraph applies to a controlled mortgage which was created before 2nd July 1920 and to which paragraph 1 of Schedule 12 to the [1968 c. 23.] Rent Act 1968 applied immediately before the commencement of this Act.

(2) If the rate of interest on a mortgage to which this paragraph applies has been, at any time since 25th March 1920, or is, after the commencement of this Act, increased beyond the limit permitted under this paragraph, the amount of the excess over that limit is irrecoverable from the mortgagor, notwithstanding any agreement to the contrary.

(3) The limit to which the rate of interest payable in respect of a mortgage to which this paragraph applies may be increased is 6 ½ per cent. per annum or 1 per cent. per annum above the standard rate of interest, whichever is the less.

(4) In this paragraph "the standard rate of interest" means—

(a) in the case of a mortgage which was in force on 3rd August 1914, the rate of interest payable at that date; and

(b) in the case of any other mortgage to which this paragraph applies, the original rate of interest.