Another big hitter mortgage lender Skipton Building Society have announced that they are bringing down their interest rates. This change to rates from Skipton is just one of many rate reductions happening, after a gigantic rate rise over the last couple of months. Rates began to slowly increase at the beginning of the year due to rising inflation, but they shot up in recent weeks as proposed tax cuts from the UK government caused a rise in the Bank of England’s base rate.
Lenders, terrified of the implications of an increased base rate, increased their rates significantly. With some lenders going from 1 or 2% to over 6% in a matter of days. Although rates are still high comparative to the ones we’ve been used to over the last few years, they are dropping by quite a lot and many lenders are joining in. Here is a breakdown of the changes happening to Skipton Building Society and their products.
Skipton Product Changes:
Skipton are reducing rates for their residential and buy-to-let retention ranges by up to 0.22%.
They will also cut rates in their five-year fixed residential products, including their five-year fixed rate at 60% LTV with a £995 fee. This has fallen from 5.81% to 5.43%.
Skipton Building Society is also bringing in new five-year fixed residential products that are available with or without a £1,995 fee. This includes a fee-free five-year fixed rate at 90% LTV at 5.85%.
They are also re-introducing two and five-year fixed rate buy-to-let products.
Skipton’s head of mortgage products Charlotte Harrison has commented:
“I’m pleased we’re once again able to continue expanding the range to support more new customers to the Society alongside balancing the service we provide to existing customers. It’s great to be able to be back in the buy-to-let market following a short break with some new products for landlords. It’s also great to see us reducing rates on our five-year fixes.”
What Do The Mortgage Experts Say?
Oportoflio mortgages in London think that these changes are fantastic. We have a wide range of clients, from big portfolio landlords to first time buyers purchasing their first starter home. Being based in London, property is expensive and things like buy-to-let mortgage affordability and increasing mortgage rates are really having an impact on people looking to mortgage properties. Because lenders are reducing their rates, it gives us and our clients a lot more confidence that the mortgage market and property market is starting to make a triumphant return. We are very happy to see rates reducing and we are always here to talk through any pre-application queries or concerns that our clients have.
If you or anyone you know is interested in the rates and lenders that Oportfolio has access to, please give our team a call today to see how we can help.
