Following the Bank of England’s decision to raise the base rate from 0.5% to 0.75%, Skipton will increase its standard variable rates (SVR) and mortgage variable rates (MVR) by 0.25% per annum for mortgage customers, effective from 1 September.
This rate of 0.75% will be the highest for nine years and will affect the standard variable rates and mortgage variable rates at the society.
Kris Brewster, Skipton’s head of products, said: “Following today’s base rate increase, Skipton will be passing on in full the increase to all of our on-sale variable rate savings and mortgage accounts.
“We’re acutely aware of our saving members on closed accounts, and we’ll also be looking at passing on increases to those too. For now, we’re committing that no Skipton variable rate savings account will pay less than 0.60%.
“UK borrowers have seen a sustained period of historically low interest rates, enabling some very attractive fixed rate mortgage deals to be snapped up.
“This is not sustainable over the long term, and there’s been an industry expectation that mortgage rates will begin to slowly climb.
“By passing on the base rate increase to both our variable rate borrowing and saving members, we’re seeking to strike the right balance for our wider membership. Skipton did not change its variable mortgage rates in November 2017, preferring instead not to pass on the previous increase in bank base rate to borrowers.”