The CBI has decided to introduce new protections for variable rate mortgage holders requiring lenders to explain to borrowers: (i) how their variable interest rates have been set; (ii) why any increases have been applied; and (iii) the level of information required to be provided to borrowers on variable rates about other products. Specifically, a statement of factors impacting on the rate must be provided in the form of a summary statement of the lender's policy for setting each variable interest rate to prospective borrowers in advance of the lending. Variable rate borrowers must also be notified of alternative mortgage options that could provide savings on an annual basis and also on the notification of any increase in the variable interest rate. These new measures will apply to regulated entities from 1 February 2017.