The Mortgage Credit Directive Order 2015

Information concerning changes in the borrowing rateU.K.
This section has no associated Explanatory Memorandum

18.—(1) Unless sub-paragraph (3) applies, the creditor must inform the borrower of any change in the borrowing rate, on paper or another durable medium, before the change takes effect.

(2) The information referred to in sub-paragraph (1) must include—

(a)a statement of the amount of the payments to be made after the new borrowing rate takes effect; and

(b)in cases where the number or frequency of the payments changes, particulars of those changes.

(3) This sub-paragraph applies if—

(a)the change in the borrowing rate is correlated with a change in a reference rate;

(b)the new reference rate is made publicly available by appropriate means;

(c)the creditor agrees with the borrower in the contract that information about any change in borrowing rate may be given to the borrower periodically; and

(d)the information concerning the new reference rate is kept available in the premises of the creditor and communicated personally to the borrower together with the amount of new periodic instalments.