Skipton Building Society Pulls a Fast One on Mortgages. Will Other Lenders Follow Suit asks LettingFocus.com

I’m interested in the recent decision by Skipton BS to unilaterally change the way the Standard Variable rate (SVR) is applied on their variable rate mortgages.

It could set a precedent to other mortgage companies.

In their mortgage agreements it was apparently stated that the SVR would be at a set amount above Bank of England base rates but it seems there was also a clause which in the event of “exceptional circumstances” allowed them to alter this.

So they have now invoked this clause and bumped up their rates. Nice!

I guess they have checked that the mortgage agreements with their customers really allowed them to pull this trick but I wonder if this was made crystal clear within the main part of the original mortgage agreements when their customer signed.

If not, then how legal is this move?

Indeed I wonder if there is a case of an Unfair Contract term here.