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Skipton announces rate changes: "Increased rates on tracker products immediately after a base rate reduction is not a good look"

ended 02. August 2024

Skipton has announced that, from 5 August, it is making a selection of changes to its mortgage product range (below). Newspage asked brokers for their views, bottom.

  • Rate reductions across our high LTV Residential products.
  • Rate increases across our low LTV Residential products.
  • Rate increases across our Buy to Let product range.
  • Rate reductions across our Government Scheme product range.
  • Rate reductions across our product range for existing customers.

3 responses from the Newspage community

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Editor
Stephen Perkins
Managing Director at Yellow Brick Mortgages
Increased rates on tracker products immediately after a base rate reduction is not a good look. This could be seen as margin-grabbing profiteering. However, more likely it's an attempt to dissuade borrowers from new trackers and to opt for a fixed rate prior to further rate drops.
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Editor
Craig Fish
Director at Lodestone
It's good to see more rate reductions particularly for those borrowing at higher loan to values. Whilst it's disappointing to see this lender increasing rates at lower levels, it's likely that this is service-driven and to manage workloads, rather than an upward trend across the board. It's very possible that this could be a theme over the next week or two as lenders manage business levels during the typically slower summer weeks due to staff being on holiday.
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Editor
Ben Perks
Managing Director at Orchard Financial Advisers
In a move to push customers to fix, Skipton increase trackers and lower fixed rate alternatives. A sign that the lenders see more competitive rates on the horizon and want to lock in customers where they can.