THE PROPERTY FILTER TAKE
Skipton cut its fixed rates by an average of 0.15% on 25 September, but Moneyfacts' 2 October rate watch lists it among 19 lenders raising fixed rates.
The numbers are pointing to a market still repricing upwards: the average two-year fix reached 5.96% on 2 October, against 4.84% at the start of March.
If you have a purchase or refinance in the pipeline, you may wish to re-run your lender stress test at today's rates and speak to your broker about how long any offer is held.
Skipton mortgage rates fell by an average of 0.15% across the society's fixed range from 25 September, according to Mortgage Solutions (24 September). Within a week the trend had turned. Moneyfacts' weekly rate watch, reported by Mortgage Strategy on 2 October, lists Skipton among lenders raising selected fixed rates, by up to 19bps (basis points, hundredths of a percentage point).
What did Skipton actually cut, and by how much?
The headline on the Mortgage Solutions report framed 0.15% as a ceiling. Its text gives 0.15% as an average, and the product figures show some cuts went deeper. The cuts applied to fixed rate products for both new and existing customers (Mortgage Solutions, 24 September).
Two products were named. LTV (loan to value) is the loan as a share of the property's value. The fee-free two-year fix at 95% LTV fell from 5.84% to 5.72%, a cut of 0.12 percentage points. The five-year fix at 95% LTV with a £995 fee fell from 5.76% to 5.49%, a cut of 0.27 points.
On an illustrative £250,000 capital repayment loan over 25 years, my own calculation puts the five-year cut at about £41 a month, from £1,574 to £1,534. The two-year cut is worth about £18 a month, from £1,586 to £1,568. Both figures exclude the arrangement fee.
Skipton also added three-year fixes to its LTI (loan to income) Booster range at 90% LTV. It opened its Delayed Start Mortgage, previously for first-time buyers only, to home movers, who can defer the first payment by up to three months (The Intermediary, September 2026). Neither report says the buy-to-let range was included.
How does the cut compare with the wider market?
The data shows Skipton moving against the market average, not with it. Moneyfacts put the average two-year fix at 4.84% at the start of March and 5.73% on 15 September, a rise of 89bps (Mortgage Solutions, 15 September).
The climb continued after Skipton's cut. The average two-year fix stood at 5.92% on Friday 25 September, the day the cut took effect. By 2 October it was 5.96%, its highest point since late June 2024 (Moneyfacts via Mortgage Strategy, 2 October). The average five-year fix rose from 5.94% to 5.98% over the same week, its highest since late September 2023.
The balance of lender activity tells the same story. That Moneyfacts rate watch lists 19 lenders raising fixed rates and 4 cutting them. Skipton appears in the increases column. The report does not name the products affected or the date Skipton's increase took effect.
The closest comparison available: NatWest is raising its fee-free two-year residential purchase fix at 95% LTV from 5.73% to 5.88% from 3 October (Mortgage Solutions, 2 October). Skipton's equivalent was 5.72% on 25 September, though it may since have moved. For context on how lenders price these products, our negotiation and finance hub covers broker and lender strategy.
Why are fixed rates rising when base rate is on hold?
The Bank of England held base rate at 3.75% on 17 September, by a 6 to 3 vote, with three members voting for 4% (Mortgage Solutions, 17 September). The same report notes that ONS (Office for National Statistics) inflation rose to 3.1% in August.
Fixed rates follow swap rates (the wholesale rates lenders pay to fund fixed-rate lending) more closely than base rate. Moneyfacts' Rachel Springall said swap rates had climbed above 4.7%, prompting a second round of increases from several major lenders that month (Mortgage Solutions, 15 September). Government borrowing costs point the same way. Bestinvest's Jason Hollands put the 10-year gilt (UK government bond) yield at 5.5%, with 30-year yields near 6% (Mortgage Solutions, 1 October).
Skipton's own pricing has moved in both directions. It raised rates across its entire fixed range from 8 September, the report giving no size for the rise (The Intermediary, 7 September). Jen Lloyd, Skipton's head of mortgage products and propositions, credited the 25 September cuts to improved market conditions. She added that "the economic outlook remains uncertain".
The underlying picture is Skipton cutting while the averages kept rising. By 2 October, Skipton itself was back in the increases column.
What does this mean for buy-to-let pricing?
Buy-to-let pricing shows the same split, with increases outnumbering cuts. NatWest will raise selected two-year BTL (buy-to-let) purchase fixes by up to 30bps from 3 October. Its 75% LTV deal with a £3,499 fee moves from 4.61% to 4.91% (Mortgage Solutions, 2 October).
Santander went the other way. It cut its 75% LTV five-year BTL purchase fix with a £1,749 fee by 16bps to 5.15%, and the two-year equivalent by 11bps to 4.99% (Mortgage Solutions, 2 October). TSB raised two BTL additional borrowing (extra borrowing on an existing mortgage) fixes, at 0-60% and 60-75% LTV, by 0.05% (Mortgage Solutions, 1 October).
For investors, the rate itself is only half the effect. BTL lenders size loans with an ICR (interest coverage ratio, the rent as a percentage of the mortgage interest at a stressed rate). A higher product rate lowers the maximum loan a given rent supports. You can test your own deal with our free BTL stress test calculator.
The next data points to watch are the weekly Moneyfacts averages and the next Monetary Policy Committee decision. The gap with older deals is already wide: the Bank of England estimates around 750,000 households coming off fixes this year pay below 3% (Mortgage Solutions, 15 September). Our property investment strategies hub covers how investors weigh holding, refinancing and buying in a rising-rate cycle.
Key takeaways
Skipton cut its fixed rates by an average of 0.15% from 25 September, with its named five-year 95% LTV fix falling 0.27 points to 5.49%.
Moneyfacts' rate watch of 2 October lists Skipton among 19 lenders raising fixed rates (Skipton by up to 19bps), against 4 lenders cutting.
The average two-year fix reached 5.96% on 2 October, up from 4.84% at the start of March (Moneyfacts).
Base rate stayed at 3.75% on 17 September, but swap rates above 4.7% are driving fixed-rate pricing upwards.
The Skipton cuts named only residential products; no source says its buy-to-let range was included.
Frequently asked questions
Did Skipton cut its buy-to-let mortgage rates in September 2026?
How much did Skipton cut its mortgage rates by?
Are mortgage rates going up or down in October 2026?
Why are fixed mortgage rates rising if base rate was held?
