The Skipton Building Society has shown its true colours by announcing plans to raise its standard variable loan rate from 3.5% to 4.95% effective from 1 March.
Doubtless Skipton's 100,000 borrowers, who had up until now been guaranteed that the variable rate would not rise while Bank of England base rate stayed at 0.5%, will be crying "foul".
Skipton doesn't care, because it refers all such "wingers" to the small print in it loans' agreements.
What does the small print say?
The magic phrase (that can be used by any bank/lender to change to rules as they go along) "exceptional circumstances".
Skipton claim that they are suffering from competition, such as that provided by National Savings & Investments (NS&I).
A lousy excuse from a lousy industry.
The financial services industry in Britain truly stinks, and should be thoroughly disinfected. No one should trust any financial institution that they have dealings with.
This all but makes the Bank of England's base rate irrelevant.
Showing posts with label Skipton. Show all posts
Showing posts with label Skipton. Show all posts
Thursday, January 21, 2010
Monday, April 07, 2008
Mortgage Woes
As the liquidity freeze continues, thanks to the ponderously slow response and inaction of the Bank of England, banks and building societies are rationing/withdrawing mortgages and in some cases profiteering.
Halifax is raising rates on trackers and fixes, and will target people with small deposits.
A two year fix for remortgagers with a 5% deposit will increase by 0.45% to 6.79%. However, borrowers with deposits of more than 10% will see smaller increases and those with more than 25% could even see rates fall slightly.
Halifax has also raised rates on its two-year trackers for borrowers who have a 10%, deposit by 0.25% to 6.74%.
NatWest raised its offset mortgage rate by 0.25% to 6.45%, even though Bank rate has been on hold and is expected to fall.
Skipton building society added a £799 fee to its standard variable rate deal offer at 6.7% for new borrowers, unheard of for variable rate mortgages.
Needless to say, this is having a very damaging effect on the already troubled housing market; as people who thought that they could afford to buy a house now find that they can't.
Halifax is raising rates on trackers and fixes, and will target people with small deposits.
A two year fix for remortgagers with a 5% deposit will increase by 0.45% to 6.79%. However, borrowers with deposits of more than 10% will see smaller increases and those with more than 25% could even see rates fall slightly.
Halifax has also raised rates on its two-year trackers for borrowers who have a 10%, deposit by 0.25% to 6.74%.
NatWest raised its offset mortgage rate by 0.25% to 6.45%, even though Bank rate has been on hold and is expected to fall.
Skipton building society added a £799 fee to its standard variable rate deal offer at 6.7% for new borrowers, unheard of for variable rate mortgages.
Needless to say, this is having a very damaging effect on the already troubled housing market; as people who thought that they could afford to buy a house now find that they can't.
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