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Skipton Building Society will hike its SVR from 3.5% to 4.95% despite the Bank of England keeping base rate on hold since March last year.
The shock rise will leave many of its 125,000 borrowers scrabbling to find an extra £122 a month to meet repayments on a typical £150,000 loan.
To change its SVR Skipton has had to cite 'exceptional circumstances' in order to break a promise to homeowners. Skipton had pledged its SVR would never be more than 3% higher than base rate - currently 0.5%.
The shock rise will leave many of its 125,000 borrowers scrabbling to find an extra £122 a month to meet repayments on a typical £150,000 loan.
To change its SVR Skipton has had to cite 'exceptional circumstances' in order to break a promise to homeowners. Skipton had pledged its SVR would never be more than 3% higher than base rate - currently 0.5%.
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