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MSE News: Mortgage blow as building society hikes SVR

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  • dasilva_2
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    Thrugelmir.
    I totally agree with your post. All i am saying is why did the Skipton not put on their website that the exceptional circumstance was that the rate had been less than 3% (why 2.7%) for more than 12 months? They seem to have left themselves wide open by stating that a rate of less than 2.7% is exceptional.
    I know it is only really a play on words but contracts are only made up of words. It is always wise to use the right ones.
  • dasilva_2
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    Noble Savage.
    I agree with you that the sub 1% rates for so long is exceptional. So why don't the Skipton define it as exceptional. They are saying a Bank of England rate of less than 2.7% is exceptional. full stop.12 months later it is no longer exceptional.
    I think you are missing my point.
  • Noble_Savage
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    dasilva wrote: »
    Thrugelmir.
    I totally agree with your post. All i am saying is why did the Skipton not put on their website that the exceptional circumstance was that the rate had been less than 3% (why 2.7%) for more than 12 months? They seem to have left themselves wide open by stating that a rate of less than 2.7% is exceptional.
    I know it is only really a play on words but contracts are only made up of words. It is always wise to use the right ones.

    Only gone and 'Thanked' you when I meant to hit the reply button! :mad:

    Why would they put some 12-month wording into the rule? Imagine rates go back up in the future. Then, for reasons unknown, they plummet again. What if they then wanted to impose 'exceptional circumstances' more quickly than 12 months in? I think they've actually covered themselves against that eventuality. I suspect it's deliberate.

    Anyway, I think we're in danger of spending too much time on this one point. Others have explained way better than I have.
  • Noble_Savage
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    dasilva wrote: »
    12 months later it is no longer exceptional.
    I think you are missing my point.

    And you are trolling. I'm out.
  • baby_boomer
    baby_boomer Posts: 3,883 Forumite
    First Post First Anniversary Combo Breaker
    edited 21 January 2010 at 9:07PM
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    Mutuals in general are on the ropes due to the government's / taxpayers' support of the banks :(.

    It's about time Skipton made this decision - which is the fairest thing to do for ALL its members since it may now be able to compete in the savings market.

    It is a mutual - owned by its members and theoretically accountable to them, after all.

    Nationwide now remains the only mutual with a stupid mortgage policy that disadvantages its other members. We are talking about ordinary Nationwide savers losing £1/2bn last year and for years to come, since why would these lucky people ever remortgage elsewhere :(. These are numbers we usually associate with governments rather than building societies.

    The Nationwide board believes that it is untouchable.

    Anyone fancy a Nationwide savers' revolt to persuade them to do a Skipton?
  • Pincher
    Pincher Posts: 6,552 Forumite
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    Didn't Japan keep interest rate near zero for a decade?
    What happened to their mortgage interest rate?

    Did their lenders simply say, "We are so bored with this low interest rate, let's raise it for the hell of it. What is this following central bank rate non-sense, any way? Whose army is going to stop me from raising my SVR?"
  • Pincher
    Pincher Posts: 6,552 Forumite
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    Nationwide now remains the only mutual with a stupid mortgage policy that disadvantages its other members. We are talking about ordinary Nationwide savers losing £1/2bn last year and for years to come, since why would these lucky people ever remortgage elsewhere :(. These are numbers we usually associate with governments rather than building societies.

    The Nationwide board believes that it is untouchable.

    Anyone fancy a Nationwide savers' revolt to persuade them to do a Skipton?

    I have a lump sum earning 6.1% p.a. in a 3 Year Fixed rate ISA since October 2008 with Nationwide.
    I have a BOE+1.75% (=2.25% paying rate) mortgage elsewhere, even lower than the Nationwide 2.5% SVR.
    So I am a Saver with Nationwide.

    You can get a 3 year e-Bond that pays 4.5~4.7% right now.

    Sub-Prime? Thank goodness Nationwide didn't get into all that non-sense.

    Carpet bagging, are we?
  • paul_griff
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    I have not read all the threads but i am dissapointed by what the Skipton is doing to it's lenders. As a previous (but not a current) mortgage customer with the skipton and a current saver (at a measly rate which won't get much better) i am considering closing my savings account in protest as how it is treating it's hard pressed borrowers.

    I MUST ASK THE QUESTION: DID THE SKIPTON BUILDING SOCIETY STRETCH IT'S FINANCES TOO FAR WHEN IT BOUGHT SCARBOROUGH BUILDING SOCIETY? AND IS IT NOW MAKING IT'S BORROWERS PAY?

    It does not affect me as i have a fixed rate mortgage for a small amount elsewhere, but it still does not look good for anyone!
  • marchstar
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    I have a rip off mortgage with GE money at about 8 per cent. Im tied in until march 09 when the rate is supposed to revert to 2.95 per cent above the base rate. I was counting on this much lower rate but after reading that some lenders are increasing their variable rates I am wondering can GE money do this. I am hoping they can not as the agreement was 2.95 above the base rate but I also know what rip off merchants they are. Does anyone have any ideas / suggestions on if they can do this. Thanks so much,
  • Joe_Bloggs
    Joe_Bloggs Posts: 4,535 Forumite
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    @marchstar when you Mention March 09 do you mean the ninth of March this year or March 2009 which was last year ?

    Perhaps there could be more a more informative acronyms that effectively describe what a particular SVR is in effect.
    J_B.
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