MSE News: Mortgage blow as building society hikes SVR

danmck_2

Sarah's beaten me to it - Skipton mortgages were sold with this BOE base rate guarentee!

I've sent a letter to Skipton asking why (amongst other things) David Cutter (the CEO) said in March last year;

“We have pledged our residential SVR will never be more than 3 per cent above base rate and, even with this at its lowest level for 315 years, we will honour our promise.”

I've been googling news bits and am suprised that no media outlet seems to have held him to task over this.

The_Dentist

some people might even say making such a misleading statement is a criminal offence

s. 397 FSMA 2000 (misleading statements and practices)

sarahbennett

In case you haven't spotted it, Skipton planning to buy loss making Chesham Building Society without a vote from members. As it did with Scarborough, it will ask the FSA for a special permission to dispense with the requirement to vote. This move of course may be disastrous for both borrowers and savers, and most probably Chesham members as well...

MarkyMarkD

But, once again, they wouldn't have announced the Chesham deal if the FSA hadn't already approved it. And the FSA wouldn't have approved it if Skipton had a huge hole in its finances ... and a huge hole in its finances is what it would have if there was any remote change of Skipton not being permitted to exercise its exceptional circumstances clause.

Dan_1976

Nice Markymark!

I must admit I did not look at Skiptons SVR, but I think it shows SVR's should not and are not normally linked to anything!

Dentist, is that at me or the Skipton lol

VIGILANT22

sarahbennett wrote: »

In case you haven't spotted it, Skipton planning to buy loss making Chesham Building Society without a vote from members. As it did with Scarborough, it will ask the FSA for a special permission to dispense with the requirement to vote. This move of course may be disastrous for both borrowers and savers, and most probably Chesham members as well...

The merger is subject to approval by the Financial Services Authority and a vote by Chesham members. If all goes according to plan, the pair will join forces on 1 June.

sarahbennett

MarkyMarkD wrote: »

But, once again, they wouldn't have announced the Chesham deal if the FSA hadn't already approved it. And the FSA wouldn't have approved it if Skipton had a huge hole in its finances ... and a huge hole in its finances is what it would have if there was any remote change of Skipton not being permitted to exercise its exceptional circumstances clause.

If it doesn't have a huge hole in its finances it doesn't need to hike the rates. And - it can't claim it is in exceptional circumstances... other than... didn't it just report an exceptional profit?

sarahbennett

VIGILANT22 wrote: »

The merger is subject to approval by the Financial Services Authority and a vote by Chesham members. If all goes according to plan, the pair will join forces on 1 June.

Indeed. Chesham members are being given a say, long time since we've had that at Skipton...

danmck_2

That's because Skipton members may not vote the way we're supposed to!

I've e-mailed my MP, and have made a complaint to the FSA regarding their not holding Skipton to task but I'm not holding out much hope of any change unless there's a legal challenge.

dasilva_2

MarkyMarkD wrote: »

and a huge hole in its finances is what it would have if there was any remote change of Skipton not being permitted to exercise its exceptional circumstances clause.

There is a huge hole in Cheshams finances. Whats that going to be plugged with? Why does the Skipton feel the need to go around sweeping up all and sundry and what benefit is their in the aquisition to their members?
I'll tell you what benefit there is. None, hence the members of the Skipton don't get a say.
Do the members of the Chesham get any rights of membership of the Skipton?