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Variable interest clause Nash v Paragon Finance plc [2001] EWCA Civ 1466; [2002] 1 WLR 685. The loan agreement contained a clause entitling the lender to increase the interest rate during the period of the mortgage. The CA held that this clause was subject to an implied term that the discretion to vary the rates was not to be exercised dishonestly, for an improper purpose, capriciously, arbitrarily or in a way which no reasonable mortgagee, acting reasonably would do. On…

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