Building Society Challenged over Rate Rise
24th February 2010
Skipton Building Society faces a legal challenge to its plan to raise the ceiling on its standard variable rate mortgage for over 60,000 customers from 3.5% to 4.95% when their current mortgage deal reaches its end.
The building society, the UK’s fourth biggest, claims it may do so in exceptional circumstances.
However, the legal challenge will proceed on the basis that the change is unlawful in terms of the Unfair Contract Terms Act 1977, and that the recent economic downturn does not constitute exceptional circumstances.