Bank of England Base Rate reduction

The Bank of England Base Rate was reduced from 0.50% to 0.25% on 4th August 2016. We have looked at how this will impact our mortgage and savings interest rates. We know you've probably got some questions about what this could mean for you, so we've put this page together to give you a bit more information.

Why has this happened?

This is the first change to the Base Rate since March 2009. The Bank of England's Governor Mark Carney said the Base Rate has been cut because the outlook for the economy has “weakened markedly” since the UK voted to leave the European Union. 

What does this mean?

Like all banks and building societies, we use the Base Rate as one of many factors when setting our savings and mortgage interest rates. So a change to the Base Rate may have a knock-on impact on the rates we can offer.

What will happen to my savings interest rates?

  • If you have a fixed rate savings account, for example a fixed rate bond, your interest rate will stay the same until the fixed rate period ends.
  • If you have a variable rate savings account, your interest rate is likely to change. We can confirm that the majority of our variable savings accounts will be reduced to reflect the reduction in the Base Rate. The majority of rates will be reduced by 0.25%, no rates will be reduced by more than 0.25%, and no rates will be lower than 0.10% as a result. We'll write to let you know the exact changes to your account(s). Please find further details of the accounts affected here.

What will happen to my mortgage interest rate?

  • If you have a fixed rate mortgage, your interest rate will stay the same until the fixed rate period ends.
  • If you have a variable rate mortgage that's linked to our Mortgage Variable Rates (MVR) or Standard Variable Rates (SVR), from 1 September Skipton Building Society will pass on in full the Bank of England’s 0.25% reduction in Bank Base Rate to SVR and MVR borrowers.
  • If you have a Base Rate Tracker (BRT) mortgage, your interest rate will change in line with the Base Rate within 14 days. If your product has what's called a 'rate floor', your rate won't go below this level. To find out if your mortgage has a rate floor, please check your Mortgage Offer or get in touch.
If your mortgage interest rate is going to change following the Base Rate change, we'll write to you with all the details.

If you still have any questions about how your savings or mortgage could be affected, we're here to help - you can visit your local branch or call us on 0345 850 1700.

Financial Services Compensation Scheme

Your eligible deposits with Skipton Building Society are protected up to a total of £85,000 by the Financial Services Compensation Scheme (FSCS), the UK's deposit guarantee scheme.

Learn more about the FSCS

FSCS - Protecting Your Money
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