A UK building society has announced a major change for residential mortgage holders, coming into force on Monday. Skipton Building Society will reduce rates across its residential mortgage range from 9am on Monday, June 15.
The lender is planning to cut rates across its 60% to 90% loan-to-value residential fixed rate products, alongside selected residential base rate tracker mortgages. Jen Lloyd, head of mortgage products and propositions at Skipton, said: “The mortgage market has repeatedly shown its resilience, and falling rates are an encouraging sign.
“However, with global conflict and amid wider economic uncertainty, conditions remain volatile and a degree of caution is still needed.”
But Ms Lloyd 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,” she said.
Rates have fallen by an average of 0.11%, with the upper end at 0.22%, according to the building society.
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 could also be beginning to stabilise, with a net balance of 34% of property professionals reporting a rise in new buyer inquiries in May, according to the Royal Institution of Chartered Surveyors (RICS).
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.”
