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
Mortgage rates ease as the labor market cools
Mortgage rates eased slightly last week after a cooler-than-expected jobs report. Additionally, the 10-year Treasury yield fell after Friday’s jobs report.
-
Flagstar Bank makes changes to TPO leadership
-
Despite industry headwinds, Real believes it can continue growing agent count
-
What a 15-year market share high means for the broker industry
-
San Francisco Realtors partner with AI startup Sidekick
-
AnnieMac Home Mortgage welcomes a new face to its executive team