Skipton Building Society has bucked the recent trend of rate increases by introducing new rate reductions from tomorrow, Wednesday 1st May.
The reductions will affect a number of its fixed and tracker rate products, including selected residential 2-year fixes and its Track Record products.
The society will also be reintroducing higher loan-to-value (LTV) remortgage options, including residential 85% and 90% LTV fixed rate remortgage products.
Newspage asked mortgage brokers for their views on these rate reductions reductions and why Skipton reduced rates while others were hiking theirs.
Reaction:
Michelle Lawson, director at Lawson Financial:
“This is great news for borrowers, but inconsistency remains the prevailing theme in the mortgage market.
“While some rates are decreasing, others are on the rise.
“These small victories, however, are steps in the right direction, and we’ll gladly accept them.
“It takes a catalyst to ignite change, and perhaps Skipton is leading the charge.”
Dariusz Karpowicz, director at Albion Financial Advice:
“Skipton Building Society’s decision to reduce rates on some fixed and tracker products is a refreshing departure from the recent trend of rate hikes.
“The reintroduction of higher loan-to-value options for remortgages is also a positive step.
“This bold move by Skipton sets them apart in the current climate, and provides a glimmer of hope in a tightening market.
“But only time will tell if this prompts a broader shift across the industry.”
Ben Perks, managing director at Orchard Financial Advisers:
“April has been a month to forget in terms of interest rates. All of 2024’s early optimism was well and truly sucked out of the market place.
“But Skipton are swooping in and saving the day by announcing reductions.
“They’ve bucked the recent trend of rate rises which is quite an aggressive play and shows a willingness to lend.
“Hopefully this is just the start and May will be much brighter.
Gary Bush, financial adviser at MortgageShop.com:
“Finally, a high street lender does what is required of them in reducing its mortgage rates to assist the country’s homeowners.
“Great initiative from Skipton Building Society again – let’s hope the others see sense now.”
Charles Breen, founder at Montgomery Financial:
“Skipton steps forward, significantly shrinking rates.
“This is good news to borrowers and flies in the face of rate rises carried out by Nationwide and NatWest earlier in the week.
“Is this a brave move? Or just a lender being pragmatic and calling other lenders out for their short-sightedness?
“The sooner more lenders follow suit and help borrowers out the better!”
Ying Tan, CEO at Habito:
“Refereshing to see Skitpon going against the grain, and reducing their rates when others have been heading in the opposite direction, although direction of movement is all relative.
“The big win though is the return of higher LTV products which will be warmly welcomed, when consumers are struggling to save for a deposit.”
