Skipton Building Society is slashing its revert-to rate by 0.5 per cent for both residential and buy-to-let.
From 1 October, Skipton will lower its residential mortgage variable rate to 4.99 per cent and its buy-to-let MVR to 5.19 per cent.
Skipton head of products Kris Brewster says: “This is great news for our customers with rates linked to MVR or whose deals still revert to MVR. We continually review our competitive position, and in the context of the wider market, and have taken the decision to reduce our MVR.
“In doing this we’re able to keep offering a wide variety of affordable competitive products to suit all mortgage needs as we continue to punch above our weight in getting people the keys to their homes.”
The Society will write to all customers who will benefit from this change.
Customers who took out a loan with the society before 30 December 2009 would move onto its standard variable rate, which was capped at 3 per cent above base rate. But those who have taken out a loan since then have reverted to its MVR.
In January 2010, Mortgage Strategy’s sister publication Money Marketing revealed the building society had scrapped the ceiling on its SVR, meaning its SVR increased from 3.5 per cent to 4.95 per cent.
The lender blamed “exceptional circumstances” as the reason behind its decision to scrap its SVR ceiling.