Ian, Emma and everyone
yes, this clause is the only reason why some rates have reduced, and some other not. Let me explain why. In february 2008 FHBR was 6.5%. In february 2009 FHBR is 3%. So the variance is -3.5%, and twice the variance is -7%.
This means that if between feb 2008 and 2009 your firstplus rate was reduced by more than 7%, then they would have to increase it to remain with their terms and conditions. For example if your rate was 10% in feb 2008 and 2% now (a very unlikely example!) then the rate would have gone down by -8%, which is more than -7% (in absolute value), so Firstplus would have to rise your rate.
Conversely (ad more realistically), those of you who had a rate of say, 9.2% in feb 2008 and a rate of, say, 10% now, would have seen an increase of 0.8% in their rate, in the face of a decrease of 7% in the FHBR. So Firstplus would be obliged to reduce your rates - and the LEAST they can do under contract obligation is bring the rate down to what it was a year ago, i.e. back down to 9.2%. And this is what they have done. So you get a 0.8% decrease. Somebody else who had, say, 9.7% in feb 2008 and 10% now, would see a reduction of 0.3%, and so on. But note thry could have reduced it by a lot more ... if fact, by up to 7%!
Finally, anyone on a lower rate in february 2008 than in february 2009, would NOT see a rate change yet.
It is simple really... they can bring up the rates as they like, so long as not by more than twice the FHBR INCREASE. Whreas if there is a FHBR DECREASE, they can wait 12 months before being obliged to make any reduction ... and even then, the reduction is the minimal one. They will only bring the rate back to what it was a year before...
I hope I explained clearly ... it is late. But make no mistake. This is only an automatic formulaa that they use at their leisure. And you rate WILL go up (by the maximum amount allowed) as soon as FHBR goes up, this is guaranteed.
And it is very ufair and very one sided. It looks like a limit on the variance, but a very, very, very louzy one...