Cheshire mortgage rates contract change.
The FSA have demanded a Cheshire mortgage rates contract change.
The Cheshire Mortgage Corporation who are part of Blemain Group, has been instructed to amend the terms of its mortgage contract after the FSA deemed the original contract wording was unfair.
The FSA felt that the original wording of the Cheshire mortgage rates contract gave the lender unrestricted power in varying mortgage rates without providing a valid reason for doing so.
The FSA believe that the terms were to the detriment of consumers as they could result in mortgage repayments being increased in both a non-transparent and unpredictable way.
The Cheshire Mortgage Corporation has now amended its terms listing a valid reason as to why an interest rate can be increased or decreased. The lender has stated mortgage rates may increase in response to increased funding costs.
The lender has also said mortgage holders will be given 2 weeks notice of any mortgage rate change.
The lender advises that it has not varied it's mortgage rates for any other reason than that given in the new terms and does not therefore believe there has been any detriment to its customers.
Existing Cheshire mortgage rates customers will also be treated according to the new terms and will be notified of the contract change. The FSA have acknowledged that the Cheshire were completely co-operative and proactive in resolving the contract issue.
