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Law firm probes Skipton ceiling contract clause
Legal Line News | 2010/02/25 03:12
pLaw firm Leon Kaye has launched an investigation into the legal implications of Skipton Building Society’s decision to scrap the ceiling on its standard variable rate./ppMoney Marketing first revealed last month Skipton’s move to scrap the ceiling rate on its SVR, which had meant borrowers would not pay more than 3 per cent above the base rate./ppThe society blamed “exceptional circumstances” for removing the ceiling./ppLeon Kaye Solicitors says such clauses are normally built in to contracts to ensure the lender has some control but it is investigating whether Skipton could be in breach of the Unfair Contract Terms Act 1977./ppLeon Kaye Solicitors’ statement says: “Those borrowers who cannot switch mortgages will be exposed to significant increases in their interest payments despite taking out an SVR for added protection against such rises in the interest rate.
/p


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