Skipton Variable Rates

Variable Rate

"Variable" simply means the rate can go up or down at any time. However, sometimes variable rate mortgages may be subject to a "floor" (below which the rate can never fall), or a "ceiling" (which the rate cannot go beyond).

The rate is varied either at the discretion of the lender or in line with movement in a market rate (such as the Bank of England Base Rate).

Most lenders have "standard" or "base" variable rates, which are varied at their discretion.

Interest rates when Skipton product deals end

The three main variable rates Skipton Building Society product deals move onto are either our Standard Variable Rate (SVR), a Base Rate Tracker (BRT), and our Mortgage Variable Rate (MVR). These rates may change by different amounts at different times. Which rate you move onto depends on when you applied for your product deal and will be shown on your mortgage offer. Details of the three rates, including the ceiling on the SVR (SVR Ceiling), appear in the table below. The rates shown in this table were last set 1 September 2016.

Separate SVRs and MVRs exist for both residential and for buy to let mortgages, and may change by different amounts at different times.

  SVR
(Residential
or Buy to Let)
BRT
(Residential
or Buy to Let)
MVR
Residential Buy to Let
Current rate: 4.70% (variable)
Set by Skipton Building Society from
time to time
4.70% (variable)
Tracks Bank of England Base Rate plus 4.45%
4.74% (variable) 4.94% (variable)
Set by Skipton Building Society from time to time
Relates only to product deals applied for: Before
30 December 2009
On or after
30 December 2009,
but before 14 November 2012
On or after
14 November 2012
Ceiling: Guaranteed not to be more than 3% above Bank of England base rate unless exceptional circumstances apply (SVR Ceiling). The SVR Ceiling currently does not apply due to exceptional circumstances, but will be reinstated voluntarily if exceptional circumstance cease. None

If the SVR Ceiling is reinstated, it will not apply to BRT products.
None

If the SVR Ceiling is reinstated, it will not apply to MVR products.

Notes

  1. Rates quoted currently include a direct debit discount of 0.25%. Where payments are not made by direct debit, the rate will be 0.25% higher.

  2. Rates quoted may be subject to any product ceilings or floors in place – any such ceilings or floors will be detailed in your mortgage offer.

Product deals on additional borrowing, porting and switching applied for on or after 14 November 2012

Additional borrowing – where you borrow more money on top of your existing mortgage.

Additional borrowing applied for on or after 14 November 2012 moves onto MVR at the end of any product deal period, even if your existing product(s) are on, or will move onto, SVR or BRT. Your additional borrowing will not benefit from the SVR Ceiling, if it is reinstated.

Porting – where you transfer the product(s) of your existing mortgage to a new property.

If your existing product is on, or will move onto, SVR or BRT, any option to port that mortgage enables you to port the same rate to your new property, even after 14 November 2012 (subject to underwriting criteria). If, on or after 14 November 2012, you apply to port and take out additional borrowing above the balance of your existing mortgage, that additional borrowing will move onto MVR at the end of any product deal period. This additional borrowing will not benefit from the SVR Ceiling, if it is reinstated.

Rate Switch– where you move your existing product to a new product without moving home.

Since 14 November 2012 you can only switch to a product which moves onto MVR at the end of any product deal period. If your existing product is on, or will move onto, SVR or BRT and you switch, you will not be able to switch back later to SVR or BRT. The new product will not benefit from the SVR ceiling, if it is reinstated.