3.35% 2yr Mortgage Fix? Skipton “Loan Shark” Building Society

The small print in this deal has a big sting in the tail. In my opinion this kind of product is as bad as payday lending at exorbitant rates.

I think Skipton BS, the owner of Connells, may be in trouble if it’s resorting to this kind of tactic to boost its income.

[mmlhlxh]

The game is now how many mortgages can banks get on their balance sheet because they know they will convert to their rental properties in due course

Banks are scrambling to set traps for consumers😢

[RR-mtwp]

Gangsters free to operate at people's expense.

[evorealtime]

Another mortgage related risk coming seems to be mortgage lenders penalising/refusing based on EPC ratings. Natwest, HSBC, Nationwide have all said things about this even with Rishi's change in policy.

[SteveOh]

Ah, good to see banks and building societies starting to 'help' people.

[lapinchiloca]

Oh wow now it makes sense... I called Connells to request a house viewing recently, but I was told the open house day was fully booked and instead they insisted in selling me their mortgage adviceand insurance services...without giving me a viewing!! And then stalked me on the phone for over a week 3 ti es a day!!

[slysov-toazt]

This is a Del Boy mortgage, suits people who believe "this time next year, we'll be millionaires, "

[stevo]

Skipton SVR is 6.5%. "Your home may be repossessed if you do not keep up with your mortgage repayments."

[mannionmax]

How are the FCA allowing this? It’s clear smoke and mirrors! Plus with consumer duty, how can signing up to a repayment mortgage that leaves someone owing more at the end of the 2 year fix be a good consumer outcome…

[stephengreen]

Sliding doors. If you didn’t have an electric car we wouldn’t get these great service station broadcasts.

[GrahamGroovyUK]

FFS!
It reminds me of when I first took out my mortgage in the mid 90's and was told I could only have it if I insured with the lender at a very uncompetitive Thankfully that rule was kicked into touch in 1999 along with a refund from the overpricing.
By 2001 I was advised to move from an endowment mortgage to a repayment mortgage as the policies were performing so badly it wouldn't get anywhere near paying the mortgage off. Oh the joys!
2002 saw house prices double within a few months as lending criteria became substantially less strict. Bit of a pattern

[evorealtime]

I don't know whether Skipton's loans are linked to savings deposits in terms of risk, but they have been off my radar for saving my house fund/present lifetime savings for some time due to risky lending practices.

[stephengreen]

Early redemption penalties are nice money spinners for building societies and banks. Do you fix on 2, 3 or 5 years. Hard to know as don’t know what the future holds. In this current slow sales market, many might be tempted to sell with a gap before buying again for all sorts of reasons.

[Abigail-sxmt]

This is the gap in politicians plans, there needs to be action taken on lending and the entire property buying and selling process. Someone needs to be bold.

[TheCyrilD]

They're obviously holding up their already inflated assets.

[zawarshah]

Great insights and excellent advice. I hope people who are desperate, find a alternative solution. This will financially destroy them sadly after 2 years.

[enabledev]

Sad, I had a plain vanilla Skipton mortgage in the late 70s, it was cheap and friendly

[philcarpenter]

Hi Charlie, very interesting video post regarding this product from Skipton. This product seems to fly in the face of what the building society stands for; its members. Keen to know your thoughts on this. As you say, this sales revenue goes straight onto their P&L, which should in theory benefit all members. But, if this product still available, simply pushes the can down the road to losing one’s house.

[IWantAGo]

Hey, what about for people who struggle to save for a deposit at all. I can pay my rent just fine but paying rent and saving at the same time is very difficult. I want to be able to start paying into a mortgage as soon as I can. Would a deposit free mortgage be OK?

[Neddiek]

And paying additional interest on the 5% fees for the length of the loan.

[craptacular]

If it gives people a way to keep their homes for another 2 years then it may not be all bad. Two years is a long time, after that interest rates could ease or they could get a pay rise that helps. As long as they don't start offering these deals to home buyers and they make it clear to remortgagees what they are signing up to.