We will not increase Standard Variable Rate (SVR) or Mortgage Variable Rate (MVR) for mortgage customers.
Skipton can confirm it will pass on in full the Bank of England Bank Base Rate increase for all of its on-sale variable savings accounts.
In addition, the UK’s fourth largest building society, will move to having none of its on-sale and off-sale accounts paying less than 0.5%.
Following the Bank Base Rate increase from 0.25% to 0.50% on Thursday 2 November, the Society can confirm it has no plans to increase its Standard Variable Rate (SVR) or its Mortgage Variable Rate (MVR) for mortgage customers. This also applies to its two UK lending subsidiaries, Amber Homeloans and North Yorkshire Mortgages.
The savings rate increases will be effective from 5 December.
As a mutual, Skipton will always seek to balance the needs of its saving and borrowing members, and act in the long-term best interests of the Society’s wider membership. Despite the Bank of England Bank Base Rate being at a historical all-time low, Skipton has worked hard to ensure savers are not the forgotten victims of the credit crunch. For the first half of 2017, Skipton paid its members an average savings rate of 1.23%, nearly five times the Bank Base Rate of 0.25%.
Skipton’s Head of Products, Kris Brewster, said:
“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. Equally, for accounts no longer available to the public, we will also increase rates to ensure no account pays less than 0.50%.
“Today’s announcement means that from next month, the UK’s only cash Lifetime ISA will increase to 0.75% together with the Government bonus of 25%.”
- Bank Base Rate last rose on 5 July 2007 from 5.50% to 5.75%. It fell to 0.5% in March 2009 (from 1%) and from 0.5% to 0.25% in August 2016.
- Over 42,000 under 40-year-olds have opened a cash Lifetime ISA with Skipton since it launched on 6 June 2017.
- Despite increasing house costs, 86% have opened a Lifetime ISA to save towards buying their first house – showing clear intent for home ownership.