Skipton cuts mortgage cost
Wednesday 13 December 1995
The decision cuts about pounds 11 off the cost of an average pounds 50,000 mortgage. The society has also moved to narrow the gap between mortgage and savings rates even further by increasing rates paid to some instant-access account savers.
Skipton has added a new tier offering 6.5 per cent gross on savings above pounds 30,000 and pledged yesterday that even if it were forced to cut rates to its 300,000 savers it would try to do so by less than other lenders.
John Goodfellow, chief executive at Skipton, yesterday challenged other lenders to follow his example. "Our current profitability is strong and this is set to continue throughout 1996," he said. "Our capital position is strong and I believe that now is the appropriate time to reduce margins for the benefit of all our members."
The move to cut 0.5 per cent off the existing rate will come into effect for the society's 60,000 existing borrowers on 1 February next year, one month after other lenders, who cut their own recently. But Skipton claimed that the difference in starting dates would only add a fraction to borrowers' bills. David Charlton, assistant general manager at Skipton, said falling bad debt provisions for societies meant that all should now be prepared to lower their margins further.
Skipton's move came amid hints that lenders will not raise mortgage rates even if Kenneth Clarke, Chancellor of the Exchequer, does not lower base rates later today.
- 1 Fifty Shades of Grey trailer released: First look at Jamie Dornan as Christian Grey
- 2 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 3 50 books for students to read this summer: From Ernest Hemingway to Gillian Flynn
- 4 Students offered grants if they tweet pro-Israeli propaganda
- 5 Rebecca Hall on her film career so far: ‘I’ve played too many repressed neurotics’
Israel-Gaza conflict: Israeli targeting policy under scrutiny after shellfire hits a mother and child, a school full of refugees and a doctor’s home
Peaches Geldof: Her final day – and her fatal decision
Students offered grants if they tweet pro-Israeli propaganda
Iraq crisis: Isis orders Mosul shop keepers to cover mannequins
Israel-Gaza conflict: Israel may have committed war crimes, says UN human rights chief
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Arizona execution lasts two hours as killer Joseph Wood left 'snorting and gasping' for air
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: Massive rise in sale of British arms to Russia
iJobs Money & Business
£60000 per annum: Harrington Starr: Trade Desk Specialist (Linux, Windows, FIX...
£40000 - £60000 per annum + BONUS + BENEFITS: Harrington Starr: CXL, Triple Po...
£70000 - £90000 per annum + Job Satisfaction: Harrington Starr: Project Manage...
£300 - £350 per day: Harrington Starr: C#.NET Developer C#, WPF,BLL,MVVM, SOA...