Skipton to increase rate of SVR mortgages

Date:Thursday 21st January 2010
Author: Max Freedman

The rate of interest paid on Standard Variable Rate (SVR) mortgages from Skipton Building Society is set to increase.

Skipton announced that the changes to its mortgage products will take place on March 1st, with all affected customers being informed in writing before the date.

They will now be paying a rate of 4.95 per cent, which the institution said is still below the 5.12 per cent average SVR asked from the top ten building societies.

It is claimed that the increases are being made due to expensive retail funding and high levels of competition within the industry.

Skipton Group chief executive David Cutter said that the SVR used throughout 2009 was exceptionally low and helped borrowers through the worst of the recession. However, in order to get good returns for its savers, the building society needed to increase the SVR to benefit all of its customers.

Encouraging more people to save was to be a priority for the Skipton, it announced last year, in order to help encourage further economic growth.