Skipton Raises Savings Rates following Base Rate Change

Skipton Building Society has raised the interest rate on its Cash Lifetime ISA (LISA) and other variable savings accounts, following yesterday’s base rate change.

From 17 August, the Skipton Cash LISA will pay one per cent, up from 0.75 per cent previously. LISA savers will continue to benefit from the annual government bonus of 25 per cent.

Skipton has also confirmed that by 31 August, all of its on-sale and off-sale variable rate savings accounts will pay a minimum of 0.60 per cent per year.

The new rates come after the Bank of England’s Monetary Policy Committee voted to raise the base rate from 0.5 per cent to 0.75 per cent – the first rate hike in more than nine years.

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“For more than a decade a generation of UK savers have suffered from the low interest rate environment,” said Kris Brewster, Skipton’s head of products. “They will welcome news that the bank base rate has been further increased to 0.75 per cent, a level not seen since early 2009.

“Following [the] base rate increase, Skipton will be passing on in full the increase to all of our on-sale variable rate savings and mortgage accounts. We’re acutely aware of our saving members on closed accounts, and we’ll also be looking at passing on increases to those too. For now, we’re committing that no Skipton variable rate savings account will pay less than 0.60 per cent.”

Skipton also confirmed that all of its standard variable rates (SVR) and mortgage variable rates (MVR) will increase by 0.25 per cent per annum for mortgage customers, effective from 1 September.

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“UK borrowers have seen a sustained period of historically low interest rates, enabling some very attractive fixed rate mortgage deals to be snapped up,” explained Brewster.

“This is not sustainable over the long term, and there’s been an industry expectation that mortgage rates will begin to slowly climb. By passing on the base rate increase to both our variable rate borrowing and saving members, we’re seeking to strike the right balance for our wider membership.

“Skipton did not change its variable mortgage rates in November 2017, preferring instead not to pass on the previous increase in bank base rate to borrowers.”

Also published on Medium.

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Last updated: August 3rd, 2018

Kathryn Gaw

Kathryn Gaw is a financial journalist based in Belfast, Northern Ireland. She has been writing about personal finance and investment trends for more than a decade, and her work has been featured in the Financial Times, City A.M., the Press Association, and The Irish Independent, among many other publications.

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