Skipton building society has written to thousands of borrowers telling them it is dropping its promise to keep its main mortgage rate within 3% of the Bank of England base rate. The society said it would be increasing its standard variable rate (SVR) from 3.5% to 4.95% from 1 March, which brokers estimate will add £180 a month to the cost of a £150,000 interest-only mortgage. The move will immediately affect 29,000 borrowers. A further 35,000 who are currently on fixed and tracker rates could also move on to the higher SVR when their deals come to an end. The move is allowed under an “exceptional circumstances” clause contained in the society’s mortgage offer letters, which also include the base rate promise.
Skipton raises mortgage costs
Most Popular Articles
Latest Articles
San Francisco Realtors partner with AI startup Sidekick
The region’s 4,000 agents will have the ability to leverage Sidekick’s AI-powered real estate assistant
-
AnnieMac Home Mortgage welcomes a new face to its executive team
-
NRMLA, MBA provide comments on HECM application, origination documents
-
Home price signals point to flat growth
-
After exiting wholesale, Fairway hires origination teams across the nation
-
Warren Buffett: Real estate agent commission structure “has worked out very well”