Skipton introduces new SVR floor
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Natalie Holt
Skipton Building Society has introduced a floor of 4.5% on its SVR for new mortgages with effect from August 3.
This means that the interest rate won’t fall below 4.5% for products sold from now on.
Existing products will continue to revert to Skipton’s current SVR of 3.5%.
A spokeswoman for Skipton says: “A low interest rate environment like the current one requires some adaptation in order to balance the needs of our borrowers and our savers which is why, while our SVR remains unchanged, new products will have a minimum pay rate.
“Despite this change, they remain highly competitive and our SVR is amongst the lowest in the market.”
It follows a similar move from Nationwide in April, which introduced a new reversion rate of 3.99% while maintaining its 2.5% base mortgage rate for existing customers.
