More than a third of borrowers at Skipton Building Society will benefit from a reduction of its standard variable
mortgage rate following the reduction in the Bank of England base rate.
The new mortgage rate, 0.20 per cent lower than before, will be set at 5.89 per cent from September 1st.
The
mortgage lender says this remains one of the lowest standard variable
mortgage rates available in the industry.
Those saving money with Skipton will also see changes in
investment accounts from August 22nd.
Savings
interest rates will be cut by between 0.15 per cent and 0.25 per cent. The average of the reductions in
savings interest rates averages 0.24 per cent, which is slightly less than the quarter per cent base rate cut.
"In an environment of falling interest
rates, it becomes increasingly important to protect savers - of which we have six times more than borrowers - whilst remaining fair to all of our members," commented Skipton's chief executive John Goodfellow.
He added: "Unlike a number of other institutions, which cut rates at a time when the Bank of England’s base rate remained stable and are taking a second bite at the cherry in response to last week’s MPC announcement, I believe Skipton has taken the path of fairness, delivering a balanced response to the recent interest rate changes."
