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Bank of England Base Rate increase

The Bank of England Base Rate has been increased from 0.25% to 0.50%, as a result of this we are pleased to confirm the following:

  • Standard Variable Rate and Mortgage Variable Rate will not increase as a result of the base rate announcement on 2 November
  • Increase to be passed on in full to all current on-sale variable savings accounts
  • By the 4 December all on-sale and off-sale variable rate savings accounts will pay 0.50% or more
  • Lifetime Cash ISA to increase to 0.75% tax-free/AER variable.

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 will have an impact on some of the rates we offer, further details are below.

What will happen to my savings interest rates?

  • If you have a fixed rate savings account, for example a fixed rate bond or fixed rate cash ISA, your interest rate will stay the same until the fixed rate period ends.
  • Some of our variable savings rates are increasing. Full details of the planned changes can be found 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 Residential or Buy-to Let variable rate mortgage on Mortgage Variable Rate (MVR) or Standard Variable Rate (SVR) or any mortgage that is linked to these two rates, your rate will remain unchanged on this occasion
  • If you have a Base Rate Tracker (BRT) mortgage your interest rate will change within 14 days in line with the Base Rate change. For the majority of customers these changes will be applied by 16 November. You will be personally notified of this change and the change to your monthly payment in writing.

Kris Brewster, Head of Products:

Kris Brewster

For years, savers have experienced significantly low interest rates – so the news of this long-awaited increase is a welcome step in the right direction. We are acutely aware of the impact the past decade has had on our saving members, and as a mutual we feel it’s right to pass on this rate increase to all of our on-sale branch, telephone and online variable savings accounts.

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.

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

*To help maintain service and quality, some telephone calls may be recorded and monitored.

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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