Shock for Skipton mortgage holders

The Skipton Building Society has shocked 29,000 of its customers by invoking the 'exceptional circumstances' clause, written into all mortgage contracts since 2002.

Greg May - flower IFA

With competition for savers' money triggering higher interest rates, the building society has just raised the SVR (standard variable rate) for its borrowers from 3.5% to 4.95%. This exceeds its previously guaranteed limit of no more than 3% above the Bank of England base rate (currently 0.5%), and forces borrowers to either accept the Skipton's higher rate or re-mortgage with an alternative lender. Another 35,000 of their customers will be affected in the next few months.

"Skipton has invoked a clause which will increase customers' mortgage costs by over 40%," says Greg May, Director of flower IFA. "It's essential that the affected mortgage holders seek impartial financial advice, so they can find the best options to suit their individual budget and circumstances,"

For more details or to arrange an appointment with one of our highly experienced mortgage advisers, call 01344 753170 or visit flowerifa.co.uk.