Skipton Changes The Rules

The Skipton Building Society has shown its true colours by announcing plans to raise its standard variable loan rate from 3.5% to 4.95% effective from 1 March.

Doubtless Skipton's 100,000 borrowers, who had up until now been guaranteed that the variable rate would not rise while Bank of England base rate stayed at 0.5%, will be crying "foul".

Skipton doesn't care, because it refers all such "wingers" to the small print in it loans' agreements.

What does the small print say?

The magic phrase (that can be used by any bank/lender to change to rules as they go along) "exceptional circumstances".

Skipton claim that they are suffering from competition, such as that provided by National Savings & Investments (NS&I).

A lousy excuse from a lousy industry.

The financial services industry in Britain truly stinks, and should be thoroughly disinfected. No one should trust any financial institution that they have dealings with.

This all but makes the Bank of England's base rate irrelevant.

Posted in: bank of england,debt,interest rates,lending,loans,mortgages,recession,Skipton