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Bank of England Base Rate update

As you may know, on 16 June 2022 the Bank of England increased the bank base rate from 1.00% to 1.25%.

As a result of this announcement we wanted to let you know about changes we are making which may affect you. We can now confirm the following:

Changes to our mortgage accounts

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Standard Variable Rate (SVR) and Mortgage Variable Rate (MVR) mortgages

What’s going to happen to the Standard Variable Rate (SVR) or Mortgage Variable Rate (MVR) on my mortgage?

Following the increase to base rate, the Society has decided to hold the SVR and MVR at current rates.

Skipton variable rates
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Base Rate Tracker mortgages

What's going to happen to the rate on my Base Rate Tracker mortgage?

The rate on your Base Rate Tracker mortgage will increase in line with the terms and conditions.  If the product has a ‘rate cap’, the rate won’t go above this level.  You can find out if your mortgage has a rate cap by checking your mortgage offer.

When will the rate change happen?

If your Base Rate Tracker was taken out with Skipton Building Society, the new rate will take effect from 30 June 2022.

If your Base Rate Tracker was originally from Scarborough Building Society, the new rate will take effect from 23 June 2022.

If your Base Rate Tracker was originally from Amber Homeloans or North Yorkshire Mortgages, the new rate will take effect from 16 June 2022.

When will my monthly payments change?

Your monthly payment will change from 1 July 2022.

Will I get confirmation of my new rate and payment?

Yes – we'll send you a letter within 14 days from 16 June which will include all the details you need.

Previous changes

As a reminder, the Bank of England announced the previous increase on the 5 May 2022 from 0.75% to 1.00%. As a result, Skipton decided not to change its Standard Variable Rate (SVR) and Mortgage Variable Rate (MVR)

Changes to our savings accounts

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Base Rate Tracker savings accounts

What’s going to happen to the rate on my Base Rate Tracker/Guarantee?

Savings accounts with rates directly linked to Bank of England base rate will be increased in line with the terms and conditions.

When will my savings rate change?

Rates on the Tracker/Guarantee savings products will be increased no later than 14 days after the announcement on Thursday 16 June from the Bank of England.

What will my new rate be?

We’ve included the new rate on our existing Base Rate Tracker/Guarantee products below, along with the current rate (as of 16 June 2022) for comparison.

Product name Current rate New rate
Branch Saver Plus Issue 2 0.75% gross pa/AER 1.00% gross pa/AER
Branch Saver Plus Issue 4 0.75% gross pa/AER 1.00% gross pa/AER
Branch Saver Plus Issue 5 0.75% gross pa/AER 1.00% gross pa/AER
Cash ISA Tracker Issue 2 (Bank Base rate + 0.35% for 12 months) 1.35% tax-free pa/AER 1.60% tax-free pa/AER
Online Cash ISA Tracker Issue 2 (Bank Base rate + 0.35% for 12 months) 1.35% tax-free pa/AER 1.60% tax-free pa/AER
Skipton Tracker Saver 1.00% gross pa/AER 1.25% gross pa/AER
Skipton Tracker Saver Online 1.00% gross pa/AER 1.25% gross pa/AER
Services Home Saving Scheme 1.25% gross pa/AER 1.50% gross pa/AER
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Fixed Rate Savings accounts

What’s going to happen to the rate on my fixed rate savings account?

Fixed rate savings accounts will be unaffected by the change in base rate and your interest rate will remain the same until the end of the fixed term.

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Variable Rate Savings accounts

What’s going to happen to the rate on my variable rate savings account?

We will be increasing all our variable savings products by 0.25% and none of the new variable savings rates will pay less than 0.85%. This will take effect on 27 June.

To view the new rates on the affected variable products, please download our PDF.

AER stands for Annual Equivalent Rate and shows what the interest rate would be if interest was paid and added each year. All ISA and Child Trust Fund interest is paid tax-free, which means it’s exempt from income tax. We pay all non ISA savings interest gross, which means no tax is deducted. It’s your responsibility to pay any tax due, based on your individual circumstances. Tax rules may change in future.

Please be aware that products can be withdrawn at any time and without notice.

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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Site intended for UK residents only. Skipton Building Society is a member of the Building Societies Association. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, under registration number 153706, for accepting deposits, advising on and arranging mortgages and providing Restricted financial advice.
Principal Office, The Bailey, Skipton, North Yorkshire, BD23 1DN.

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