Skipton Building Society has recently announced that it will be raising its Standard Variable Rate (SVR) by 0.25%. This change will take effect from the 1st of June 2021 and will affect all existing customers with a mortgage from Skipton.
The increase in SVR is a result of the Bank of England’s decision to raise the base rate of interest from 0.1% to 0.25%. This is the first time the base rate has been increased since March 2009 and is a sign that the economy is beginning to recover from the effects of the coronavirus pandemic.
The increase in SVR will mean that customers with a mortgage from Skipton will see their monthly repayments rise by an average of £15 per month. This could have a significant impact on those customers who are already struggling financially due to the pandemic.
Skipton has said that it will be offering customers who are struggling to make their mortgage payments due to the increase in SVR the option to switch to a fixed-rate mortgage. This could help to reduce the amount they are paying each month, as fixed-rate mortgages are usually cheaper than variable-rate mortgages.
Skipton has also said that it will be offering customers who are struggling financially due to the pandemic the option to defer their mortgage payments for up to three months. This could help to ease the financial burden on those customers who are struggling to make their mortgage payments due to the increase in SVR.
It is important for customers to remember that while this increase in SVR could have a significant impact on their finances, it is also a sign that the economy is beginning to recover from the effects of the pandemic. This could be a positive sign for those customers who are looking to purchase a property in the near future, as it could mean that mortgage rates could remain low for some time.
Overall, Skipton’s decision to raise its Standard Variable Rate by 0.25% is likely to have a significant impact on its existing customers. Those who are already struggling financially due to the pandemic should consider switching to a fixed-rate mortgage or deferring their payments in order to reduce their monthly outgoings. However, it is also important to remember that this increase in SVR could be a sign that the economy is beginning to recover from the effects of the pandemic, which could be good news for those looking to purchase a property in the near future.