Skipton Building Society has confirmed a major change to its mortgage range. It came into effect at 9am on Tuesday (June 23), with the mortgage lender claiming the move is a “welcome respite for borrowers”.
Skipton has reduced its rates across its residential fixed-rate mortgage range. It has also launched a new three-year fixed-rate product for existing customers borrowing at up to 95% loan-to-value. It comes after the lender slashed selected residential mortgage rates by up to 0.22% earlier this month. They cited encouraging market resilience while advising caution amid ongoing global economic volatility.
According to Skipton, the average rate reduction of its fixed-rate mortgage range is 0.18%. Meanwhile, the largest cut amounts to 0.4%.
Jen Lloyd, head of mortgage products and propositions at Skipton, said: “The mortgage market has continued to show resilience, and we’re pleased to introduce further rate reductions following cuts earlier this month. With interest rates holding and a degree of improving certainty in the Middle East, this is providing some welcome respite for borrowers.
“While global conditions remain changeable and affordability is still stretched for many, these latest reductions represent a positive step forward for both existing homeowners and those looking to get onto or move up the property ladder. We will continue to monitor the environment closely and respond responsibly, maintaining a cautious but supportive approach to help our customers navigate the market.”
Skipton previously said their cuts offer much-needed relief to homeowners and property boyers. However, they also emphasised how many are still struggling to afford homes and must take a responsible approach to lending.
The ongoing war in the Middle East has been a primary driver of volatility in the UK mortgage market. It has triggered uncertainty that has forced banks and building societies to change how they price mortgages.
In March, UK banks and building societies withdrew over 1,500 mortgage products overnight to reprice their risk. Meanwhile, average two-year fixed rates jumped from around 4.8% to 5.5%.