Virgin Money updates mortgage rates

It also aligns lending into retirement policies with Clydesdale Bank

Virgin Money updates mortgage rates

Virgin Money has announced updates to its mortgage range, including new product launches and rate changes, while aligning its lending into retirement policies with Clydesdale Bank.

The updates to Virgin Money’s mortgage products include the launch of new exclusive fixed rate options, such as an 80% loan-to-value (LTV) two-year fixed rate at 4.69% with a £895 fee, a fee-saver option at 4.95%, an 80% LTV five-year fixed rate at 4.51% with a £895 fee, and a fee-saver at 4.62%.

Rates on existing products were also increased. These include the 80% LTV Fix and Switch fee-saver, which rose by 0.09% to 4.99%; the 95% LTV Fix and Switch fee-saver and Shared Ownership fee-saver, both up by 0.08% to 5.61%; and the 95% LTV 5-year fixed rate fee-saver, which increased by 0.12% to 5.31%.

Other increases include a 0.10% rise on the 90% LTV two-year Shared Ownership fee-saver, bringing it to 5.29%, and a 0.08% increase on the 95% LTV five-year Shared Ownership fee-saver, now at 5.17%. For remortgage customers, the 80% LTV five-year fixed rate with a £995 fee has increased by 0.02% to 4.49%, and the fee-saver equivalent has risen by 0.02% to 4.64%.

The full details of all mortgage products offered by Virgin Money can be found on its latest mortgage update.

Meanwhile, the lender is also aligning its own and Clydesdale Bank’s lending into retirement policies, introducing new measures affecting affordability assessments and retirement age criteria.

The maximum age for Clydesdale Bank mortgages has been increased from 75 to 75 years and 364 days, while Virgin Money will now use a customer’s 71st birthday or their chosen retirement age — whichever is earlier — when assessing applications.

For customers seeking mortgage terms that extend into retirement, affordability checks will vary depending on how close they are to retirement. If retirement is more than 10 years away, affordability will be based on current income, with proof of pension contributions required. For those less than 10 years from retirement or already retired, affordability will be based on the lower of their current or retirement income. 

Self-employed customers may have their income considered for affordability checks up to their 76th birthday, depending on their line of work. However, interest-only downsizing plans will only be available up to the customer’s 71st birthday or chosen retirement age, whichever comes first, even for self-employed borrowers.

Mortgage brokers working with Clydesdale Bank have been advised to submit applications affected by these changes by 5pm tomorrow, January 22.

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