Skipton says that its 5.59% standard variable rate makes it one of the lowest on the market.
The new rate will be created when the society's existing concessionary mortgage discount scheme is incorporated into the residential SVR on July 1 2004.
John Goodfellow, chief executive, says: “When Skipton launched the mortgage discount scheme in 2001, it was a fair response to calls to reduce the growing gap in the industry between interest rates on offer to new borrowers and those being paid by existing borrowers.
“However, as time has gone on, we have recognised the need for transparency, so that borrowers can see much more clearly the value they get with a Skipton mortgage.
“With a single, low residential SVR, all of our borrowers are getting a competitive deal. There will be no increases in rates and indeed, 6,000 customers will be better off as they see their repayments reduce sooner than they would have done with the scheme.”
The concessionary mortgage discount scheme applied to borrowers who were on the Society's variable rate and offered a discount of 0.75% to those who had held a mortgage with the society on their main residence for two years or more.
Goodfellow adds: “Anyone who is currently in the scheme will automatically be moved to the new residential SVR from July 1. the company has written to these borrowers individually to explain the changes and to notify them of their new interest rate.”