It was not unexpected when the Skipton announced their rise in Standard Variable Rate today as in fact they have not really been a lender for at least the last 18 months.
Are we likely to see other Building Society’s follow suit over the coming months? Unfortunately, YES. Especially those lenders who are not greatly active in the mortgage market and who still need to try and keep their savers funds invested with them by offering attractive interest rates on savings.
This is, however, potentially good news for the mortgage market as a whole as it should lead to a stimulus for the remortgage market with thoses lenders’ mortgage holders looking to jump ship.
Andrew Fowler worked for Limetree Financial Services until December 2010. Feel free to contact another member of our team for help or advice.
