Skipton confirms full rate cut will be passed on to borrowers

Ryan Fowler

August 8, 2016

Skipton Building Society has confirmed that it will pass on in full the Bank of England’s 0.25% reduction in interest rates to Standard Variable Rate and Mortgage Variable Rate borrowers.

The UK’s fourth largest building society said it will pass on in full the reduction to all SVR and MVR residential and buy-to-let MVR mortgages.

Skipton’s Standard Variable Rate will move from 4.95% to 4.70%. Skipton’s Mortgage Variable Rate will move from 4.99% to 4.74%.

Budget 2017: The Budget in full

It also confirmed that rates on the majority of Skipton’s existing variable savings accounts will also be reduced to reflect the reduction in the base rate.

Rates will be reduced by no more than 0.25%, and no rates will be lower than 0.10% as a result.

The change will come into effect from 1 September and the society will write directly to all customers affected should their mortgage or savings rate alter as the result of the change.

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  • It’s of course gratifying to see lenders assuring customers that they will benefit from the base rate cut.The closer the BBR falls to zero, though, the narrower net interest margins become and the less impact further cuts will realistically have without further monetary stimulus. Such stimulus is risky, because increasing the amount of money in the system weakens the currency. This will do more long-term economic damage by weakening spending power.

    The government needs to supplement monetary policy with investment in infrastructure – particularly housing – to ensure that the economy suffers as few adverse effects as possible.