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.
2(1)This paragraph applies to a controlled mortgage to which paragraph 2 of Schedule 12 to the [1968 c. 23.] Rent Act 1968 applied immediately before the commencement of this Act.
(2)In so far as the rate of interest on a mortgage to which this paragraph applies has been, at any time since 1st September 1939, or is, after the commencement of this Act, increased beyond the standard rate of interest, the amount of the excess is irrecoverable from the mortgagor, notwithstanding any agreement to the contrary.
(3)In this paragraph " the standard rate of interest" means—
(a)in the case of a mortgage which was in force on 1st September 1939, 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.
(4)Sub-paragraphs (2) and (3) above shall have effect subject to paragraphs 3 and 4 below.
3In relation to a mortgage to which paragraph 2 above applies but which became a mortgage to which the Rent and Mortgage Interest Restrictions Acts applied by virtue of the [1952 c. 40.] Crown Lessees (Protection of Sub-Tenants) Act 1952, for any reference in paragraph 2 above to 1st September 1939 there shall be substituted a reference to 8th February 1952.
4In relation to a mortgage to which paragraph 2 above applies but which became a mortgage to which the Rent and Mortgage Interest Restrictions Acts applied by virtue of section 33 of the [1954 c. 53.] Housing Repairs and Rents Act 1954, for any reference in paragraph 2 above to 1st September 1939 there shall be substituted a reference to the following date:—
(a)11th November 1953, if on that date the dwelling-house which is the subject of the mortgage was let under a tenancy to which the Rent and Mortgage Interest Restrictions Acts applied as from the commencement of the said Act of 1954 ; and
(b)in any other case, the date between 11th November 1953 and the commencement of that Act (30th August 1954) on which it was first so let.
5In paragraphs 3 and 4 above " the Rent and Mortgage Interest Restrictions Acts" means the Rent and Mortgage Interest Restrictions Acts 1920 to 1933, as modified by Schedule 1 to the [1939 c. 71.] Rent and Mortgage Interest Restrictions Act 1939.