I'm sure investors will be glad to hear this news, which should build on some of the market leading rates we are seeing at the moment, such as Skipton's fixed rate bonds. That said, I believe it is still a good market for borrowers, as mortgage rates remain relatively low. I expect we will see a run on fixed rate mortgages as, regardless of what the City predicts, the borrower on the street may see this rise as a sign of things to come and look to get the best deal they can now.
"As the Society with the lowest interest margin, we are keen to ensure that both investors and borrowers benefit from our competitive advantage, so we are currently reviewing our options to ensure a fair balance of rates across our product range. We hope to make a decision regarding Skipton Building Society's rates early next week. It is worth pointing out that any delay in making possible increases to lending rates is in the interest of our borrowers, although those with both mortgages and investments tracking the base rate will see their rates reflect the full rise, with effect from 21 May."
