Bank of England Base Rate increase

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

  • The increase would be passed on in full to all Skipton on-sale variable rate savings and mortgage products.
  • By 31 August 2018 all on-sale and off-sale variable rate savings accounts would 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 2018
  • Standard Variable Rates (SVR) and Mortgage Variable Rates (MVR) would increase by 0.25% per annum for mortgage customers, effective from 1 September 2018.

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 happened 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 stayed the same until the fixed rate period ends.
  • Some of our variable savings rates increased.

What happened to my mortgage interest rate?

  • If you have a Skipton fixed rate mortgage, your interest rate stayed 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 changed on this occasion. You will have been 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 changed within 14 days in line with the base rate change. You will have been 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 were 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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