Debt Management News: Skipton to increase mortgage costs

22/01/2010

Customers, who have taken advantage of Skipton Building Society's standard variable rate (SVR) mortgage, could be in need of a Debt Management Plan following the announcement of an increase in the bank's mortgage rate.

The bank will increase its SVR from 3.5 per cent to 4.95 per cent on March 1st.

Which? chief executive Peter Vicary-Smith commented: "We can't see any justification for this unexpected hike in Skipton's SVR and are extremely disappointed by this decision.

"Sadly, a number of their customers will have no option but to stay on this SVR, facing a significant rise in their mortgage repayments."

He advised customers to be careful when taking out a mortgage that is linked to a bank or building society's SVR and called for the Office of Fair Trading and the Financial Services Authority to take greater care to protect consumers and their money.

Kevin Still, director of EuroDebt commented: "The Daily Telegraph has reported that 29,000 of Skipton's 100,000 mortgage customers have been told they could pay an estimated additional £2,000 per year in interest, with another 35,000 customers still to be affected.

"Finding an additional £167 a month from disposable income will be tough and there will inevitably be debt problems arising from this."

Tags; Debt Management and Banking,

Regional Debt Advice; Debt Advice Skipton,

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