Connells owners, Skipton Building Society, has come under fire for hiking rates for its borrowers by invoking the ‘exceptional circumstances’ clause.
It has raised its standard variable rate from 3.5% to 4.95%, having previously promised to cap variable loan rates at a maximum of 3% above base rate.
The ‘exceptional circumstances’ clause was introduced by Skipton in 2002, but it is thought that very few borrowers ever read the small print.
The concerns are that either other lenders will follow Skipton, or that none will, meaning that Skipton borrowers will leave the building society en masse to put their business elsewhere – if possible.
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Comments
They should stick to their core business (money) and not dabble in estate agency!! i feel very sorry for their borrowers. one should not bite the hand that feeds.
They should stick to their core business (money) and not dabble in estate agency!! i feel very sorry for their borrowers. one should not bite the hand that feeds.