A UK building society has announced a major change for residential mortgage holders, set to take effect on Monday. Skipton Building Society will reduce rates across its residential mortgage range starting at 9am on Monday, June 15.
Rate Reductions Across Products
The lender plans to cut rates on its 60% to 90% loan-to-value residential fixed rate products, as well as selected residential base rate tracker mortgages. Rates have fallen by an average of 0.11%, with the upper end reaching 0.22%, according to the building society.
Jen Lloyd, head of mortgage products and propositions at Skipton, described the move as a positive sign following weeks of instability. She stated: "The mortgage market has repeatedly shown its resilience, and falling rates are an encouraging sign."
Caution Amid Volatility
However, Lloyd warned that caution is still needed. "With global conflict and amid wider economic uncertainty, conditions remain volatile and a degree of caution is still needed," she said. She added that the cuts will bring welcome relief for both existing homeowners and those looking to step onto or move up the property ladder.
"While affordability remains stretched, these reductions mark a positive step forward, and we'll continue to monitor conditions closely and respond responsibly to support our customers as the market recovers," Lloyd said.
Market Stabilisation Signs
Mortgage rates previously jumped amid economic uncertainty prompted by the conflict in the Middle East, but the tide appears to be shifting, with some lenders cutting rates in recent weeks. The overall downturn in housing market activity linked to economic uncertainty may also be beginning to stabilise.
According to the Royal Institution of Chartered Surveyors (RICS), a net balance of 34% of property professionals reported a rise in new buyer inquiries in May. While this continued to indicate weaker housing market demand, it was the first time since January that demand had not moved further into negative territory.
Tarrant Parsons, head of market research and analysis at RICS, said: "The latest survey data suggests the recent downturn in activity may be beginning to stabilise, with several key indicators broadly holding steady. However, as they remain in negative territory, it would be premature to interpret this as the start of a recovery."
