Building Societies (Amendment) Act, 1986
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Tiered interest rates. |
4.—(1) A society shall not charge a tiered interest rate on a loan made to a member where— | |
(a) the mortgage in respect of the loan was created before the 1st day of August, 1986, and | ||
(b) a tiered interest rate was not being charged in respect of the loan on that day. | ||
(2) (a) A society shall not charge a tiered interest rate on a loan made to a member where the mortgage in respect of the loan was created on or after the 23rd day of October, 1986. | ||
(b) This subsection shall have effect from the first day of the month following the expiration of a period of six months commencing on the date of passing of this Act. | ||
(3) In this section and in section 5 of this Act— | ||
“loan” means a loan made by a society to a member on the security of a mortgage of a freehold or leasehold estate or interest in a dwelling; | ||
“tiered interest rate” means the rate of interest on a loan where such rate— | ||
(a) is determined by reference to the amount of the loan made, or to the amount outstanding at any time on foot of the loan, or to the income of the member to whom the loan is made, as the case may be, and | ||
(b) is greater than the lowest rate of interest applicable at the time to loans made by the society to members generally. |