Scarborough BS and Skipton Mortgage DD rip off

Paul123europe

I currently have a 0.89% ABR lifetime tracker taken out with the Scarborough Building society giving me a current pay rate of 1.39%. The Skipton have informed me that they have a minimum floor rate of 3% and that this will immediately apply to my mortgage. This more than doubles my monthly payment as I pay interest only. This is a disgraceful con, as what they and the Scarborough have sought to do is get out of their legal contractual commitments by shifting my mortgage to the Skipton which has a collar. Surely this is not legal as I must be entitled to the mortgage conditions that I took out!

Just because they (the Scarborough) realized they were loosing out on the mortgages tracking at this low rate they are trying to get out of their commitments by switching conditions to those of the Skipton. This is a blatant con being manifested by both societys.


Can anybody advise if this is legal?

Robert_Sterling_3

I can't say whether or not it is legal but my opinion is that it should be illegal.

MarkyMarkD

I'm scarcely surprised that Skipton said (3 posts ago) that what they are doing had been agreed by the FSA. That's what I said weeks ago. Obviously it was agreed by the FSA - it was in the merger document, which the FSA signed off.

Regarding the collar issue, I agree with Robert_Sterling that it's wrong. But it's doubtless also been agreed by the FSA.

Has nobody else noticed that Nationwide are charging ex-Dunfermline customers - who are now members of Nationwide, according to all Nationwide's PR on the matter - a different SVR to their own home-grown customers, and those they took over from Cheshire or Derbyshire? Nationwide/Cheshire/Derbyshire's SVRs are all 2.50%; Dunfermline's (or rather, Nationwide's for ex-Dunfermline borrowers, because they are no longer Dunfermline members) is 5.19%. Completely not "treating customers fairly"; completely (I have no doubt) signed off by the FSA as a quid pro quo for Nationwide taking most of Dunfermline off the government's hands.

These are unusual times, and the normal rule of law does not appear to apply.

Taking the original complaint to the FOS is not going to get you anywhere, if the Skipton have got FSA approval for their exceptional action. IMHO.

fineanddandy

Hopefully the Ombudsman will see despite the FSA/BS stitch up that this is wholly unfair, increasing the financial burden on people who acted prudently by fixing the rate. We live in hope!

fineanddandy

Right, just heard from Skipton BS..they are sorry I am unhappy..and they thank me for letting me know that I am unhappy. - GOOD START

They are looking into it, and to give them 28 days to come back with a response. - BIT ANNOYING, AS I HAVE JUST BEEN THROUGH THAT WITH THE SCARBORO, BUT HEY HO

It a standard template response, I know, but i just thought i would update as it happens..

Anyone else had the same?

andrewmp

I've had nothing yet.

Has anyone had their April payment taken yet? Nothing taken from me yet.

fineanddandy

Andrew, mine didn't show on my online statement, so i rang Skipton today...they have taken it, and it should show up within a day or two.

andrewmp

fineanddandy wrote: »

Andrew, mine didn't show on my online statement, so i rang Skipton today...they have taken it, and it should show up within a day or two.

Well it's three days late, they'll probably charge me another £1000 extra over the term now.

fineanddandy

andrewmp wrote: »

Well it's three days late, they'll probably charge me another £1000 extra over the term now.

Many a true word spoken in jest Andrew.

I had a professional look at the figures, and in his opinion I should be charged just £1.50 a month extra over the remaining term, and he can not see how Skipton have added nearly £9 extra a month unless they have added a fee to the sum which if it has, has not been disclosed in an open fashion. I think it is very poor form that they have yet to supply me a breakdown of the costs..

andrewmp

fineanddandy wrote: »

Many a true word spoken in jest Andrew.

I had a professional look at the figures, and in his opinion I should be charged just £1.50 a month extra over the remaining term, and he can not see how Skipton have added nearly £9 extra a month unless they have added a fee to the sum which if it has, has not been disclosed in an open fashion. I think it is very poor form that they have yet to supply me a breakdown of the costs..

I got a little mini breakdown from them. They said my outstanding balance was £61091. Not bad for a £61,000 loan taken out 7 months ago with all payments made on time. I understand how they've worked it out though, they've classed it as a missed payment and added that amount to the loan, it's wrong but they can do it by their t&c's and by law. Scum company who I'm stuck with for another 9.5 years.

Still no payment taken this morning, I bet this does end up costing me even more!!