"Based on this, borrowers will still be seeing affordable mortgages for a while yet. I predict further rate rises will occur throughout 2004, but Skipton's view is that, even with rates at 5%, the housing market will only cool slightly.
"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 will be monitoring events, and 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 20 February."
