Lender also announces rate reductions on select existing deals
Virgin Money has launched new fixed rate products across its ranges of purchase exclusives and buy-to-let purchase and remortgage exclusives.
Products on the purchase exclusives range with free valuation include two- and five-year fixed rates at 65% and 75% loan-to-value (LTV). For the five-year deals, there are options that are fee-free and those with a £1,295 fee. The lowest rate in the range is 4.60%, available on the 65% LTV five-year fix with a £1,295 fee.
The lender has also unveiled four new BTL purchase and remortgage exclusives that come with a 1% fee. Two-year fixed rates at 60% and 75% LTV are priced 5.64% and 5.74% respectively, while five-year fixes at 60% and 75% LTV have rates of 5.09% and 5.37% respectively.
Virgin Money also announced rate reductions of up to 10 basis points (bps).
Purchase exclusives with £1,295 fee were reduced by up to 5bps, with rates starting from 4.91.
Purchase exclusive fee-savers had their rate cut by up to 8bps, with rates starting from 5.07%.
The lender’s remortgage exclusive at 60% LTV with £995 fee had its rate lowered by 4bps to 5.22%, while BTL remortgage and purchase exclusives with £2,195 fee were cut by up to 10bps, with rates starting from 4.96%.
“We are delighted to launch a new set of intermediary exclusive products covering purchase and buy-to-let,” stated Richard Walker, head of intermediary sales at Virgin Money. “Our buy-to-let fixed rates start at 5.09% with 1% fee, while our latest residential purchase exclusives start at 4.60%.
“To offer more choice to those buying a new home, this residential exclusive range covers both fee and fee-free options, plus a free valuation to help reduce the associated costs of buying.”
Brokers welcomed the latest rate cuts from Virgin Money, saying that two-year fixed rate mortgages were now edging ever closer to having rates starting with a ‘four’.
“The race to be the first mortgage lender with a two-year fixed rate starting with a ‘four’ has certainly heated up following the Bank of England’s decision to hold the base rate last week,” commented Jamie Lennox, director at Dimora Mortgages. “Time will tell who will be the first to take that leap, but it will be like Black Friday come early for borrowers when it arrives.”
Justin Moy, managing director at EHF Mortgages, agreed, saying that “we are definitely edging towards a Black Friday fire sale – if there has ever been such a thing for mortgages.”
He added: “Borrowers looking to celebrate sub-5% two-year fixed rate deals need to hang up the bunting, as it looks like it will be time to celebrate very soon.”
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