Skipton Building Society is set to introduce reductions to its mortgage rates, aimed at enhancing homeownership affordability.
This move comes in the same week the society introduced a new first-time buyer range and a Home Deposit Saver scheme.
Effective from 9am tomorrow (25th July) Skipton will reduce rates across its fixed rate and base rate tracker residential mortgage products.
Significant changes include reductions in selected 2-year residential fixed and base rate tracker products.
The most notable rate reduction is for the 2-year base rate tracker at 75% loan-to-value (LTV) with a £995 fee, which will decrease from 5.85% to 5.65%.
The most competitive rate is the 2-year fixed at 60% LTV with a £495 fee, dropping from 4.87% to 4.75%.
Additional reductions include the 2-year fixed at 60% LTV with no fee, now 4.88%, the 2-year fixed at 75% LTV with no fee, now 4.96%, the 2-year fixed at 75% LTV with a £495 fee, now 4.85%, the 2-year fixed at 75% LTV with a £995 fee, now 4.80%, and the 2-year base rate tracker at 60% LTV with a £995 fee, now 5.58%.
These rate cuts align with the findings of the recent Skipton Group Home Affordability Index, which highlighted the challenges of homeownership.
The index revealed that only one in eight potential first-time buyers can afford the average property in their area, dropping to one in 100 for those earning £22,850 or less.
Additionally, nearly 80% of potential first-time buyers lack sufficient savings for a deposit, and 40% of renters spend 45% or more of their income on essential housing costs, hindering their ability to save.
Charlotte Harrison, CEO of home financing at Skipton Building Society, said: “Everyone should have somewhere to call home, but achieving that today is an insurmountable struggle for far too many.
“We know it’s all very well highlighting key housing issues, but this doesn’t help anyone if you don’t spend time exploring and investing in the solutions.
“Which is why, I’m pleased to announce that as well as launching a brand-new first-time buyer range this week, we are also making cuts to a variety of mortgage rates too.
“In doing so we’re helping to take another step forward in supporting home affordability.”
