Skipton Building Society SVR Interest Ceiling

PR1968

Hello,

I am after some help/information on my current mortgage with the Skipton.

The mortgage I took out with Skipton in 2004 was a 2 year fixed rate mortgage. The mortgage then reverted to the SVR, which had a ceiling of 3% above the bank of England Base Rate.

In March 2010 the Skipton revoked the ceiling and started charging 4.95%, citing an exceptional circumstances clause in my mortgage agreement.

For lots of different reasons (all my own fault) I was unable to take the option of moving my mortgage to an alternative supplier when this option was offered by the Skipton, or obtain a different mortgage now.

I am now behind on my payments, and to be fair the Skipton have been very good and understanding of my situation.

However I am interested in whether anyone has complained about the ongoing validity of an 'exceptional circumstances' argument. To either the Skipton or FSA.

Kind regards,

Paul

Thrugelmir

PR1968 wrote: »

However I am interested in whether anyone has complained about the ongoing validity of an 'exceptional circumstances' argument. To either the Skipton or FSA.

Leon Kaye solicitors were looking into the matter around 2 and half years ago. The premise being that Skipton's hike was in breach of the Unfair Contract Terms Act 1977.

There was a long thread on here. That died a death. So can only assume that insufficient people stepped up to provide funding to proceed further through the Courts.

From Skipton's annual accounts it was fairly obvious that they were in serious financial trouble if no rise had been pushed through. As the cost of deposits to the Society meant there was little to no margin on lending.

PR1968

Thrugelmir,

Thank you.

As I don't have the funds to start court proceedings either I guess this will just be one of those things that companies like the Skipton can get away with.

In my opinion anything that goes on for more than 2 years can no longer be described as 'exceptional circumstances'.

Paul