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Bank of England Base Rate increase

On 2 August 2018, the Bank of England announced that the base rate has increased from 0.50% to 0.75%. As a result of this we have decided the following:

  • The increase will be passed on in full to all Skipton on-sale variable rate savings and mortgage products.
  • By 31 August all on-sale and off-sale variable rate savings accounts will pay 0.60% variable per annum or more
  • Lifetime Cash ISA to increase to 1.00% tax-free per annum/AER variable before 17 August
  • Full range of Super Trackers to increase to 1.27% AER variable before 17 August
  • Standard Variable Rates (SVR) and Mortgage Variable Rates (MVR) will increase by 0.25% per annum for mortgage customers, effective from 1 September.

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 Skipton fixed rate mortgage, your interest rate will stay the same until the fixed rate period ends.
  • If you have a Skipton Residential or Buy-to-Let variable rate mortgage on MVR or SVR, or any mortgage that is linked to these two rates, your rate will change on this occasion. You will be personally notified of this change and the change to your monthly payment in writing.
  • If you have a Skipton Base Rate Tracker (BRT) mortgage your interest rate will change within 14 days in line with the base rate change. You will be personally notified of this change and the change to your monthly payment in writing.

Kris Brewster

As a 165-year-old building society, balancing the needs of our saving members with those of our borrowing members remains our priority. For more than a decade, a generation of UK savers have suffered from the low interest rate environment. They will welcome the news that the base rate has been increased to 0.75%, a level not seen since early 2009.

Kris Brewster, Head of Products

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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