Cheshire SVR rate?

ben2909

I'm currently on a SVR 2% above base rate so paying 2.5% on a repayment mortgage. Having looked for the original terms and conditions (which I can't find) does anyone know if they can put my rate up if the base rate stays the same. I had found a little paragraph on their website that states the SVR will guarantee to be no more than 2% above BOE base rate.
Does this seem that I am safe from increase like other lenders are doing.
The original mortgage was taken out around June 2004.
Thanks

castle96

if it is 'tracking' the BofE base rate, thenthe only way it could rise is if the base rate does

Thrugelmir

ben2909 wrote: »

Does this seem that I am safe from increase like other lenders are doing.

No it doesn't.

The Cheshire Building Society will make a decision based on commercial grounds to keep the operation solvent and profitable.

If need be they will increase their rates.

ben2909

Thrugelmir wrote: »

No it doesn't.

The Cheshire Building Society will make a decision based on commercial grounds to keep the operation solvent and profitable.

If need be they will increase their rates.

I don't see how they can raise my SVR if the terms state "guarantee to be no more than 2% above BoE"

Thrugelmir

ben2909 wrote: »

I don't see how they can raise my SVR if the terms state "guarantee to be no more than 2% above BoE"

The Directors are legally bound to run the Building Society unter the Act of 1997 in a solvent manner.

This will over ride any consumer claim of unfair treatment should "push come to shove".

The Skipton Building Society broke their cap guarantee on the basis that the BS would have gone bust.

Banks have to borrow money to fund mortgages. Contrary to common belief they do not print it or borrow it from the Bank of England.

Takes around 20 Building Society savers to fund a single mortgage.