Skipton BS has bucked the recent trend of rate increases by announcing rate reductions (from Wednesday, 1 May) on a number of its fixed and tracker rate products, along with the re-introduction of higher loan-to-value remortgage options.
Newspage asked mortgage brokers for their views on these rate reductions reductions and why Skipton BS is reducing rates whilst others are hiking their rates.
Michelle Lawson, director at Lawson Financial said, “This is great news for borrowers, but inconsistency remains the prevailing theme in the mortgage market. While some rates are decreasing, others are on the rise.
£These small victories, however, are steps in the right direction, and we’ll gladly accept them. It takes a catalyst to ignite change, and perhaps Skipton is leading the charge.”
Ying Tang, CEO at Habito said, “Refreshing to see Skitpon going against the grain, and reducing their rates when others have been heading in the opposite direction, although direction of movement is all relative.
“The big win though is the return of higher Loan to Value products which will be warmly welcomed, when consumers are struggling to save for a deposit.”
Cherles Breen, founder at Montgomery Financial said, “Skipton steps forward, significantly shrinking rates, this is good news to borrowers and flies in the face of rate rises carried out by Nationwide and NatWest earlier in the week, is this a brave move or just a lender being pragmatic and calling other lenders out for their shortsightedness?
“The sooner more lenders follow suit and help borrowers out the better!”
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