Virgin Money has updated its mortgage range with rate reductions on selected three and five-year fixed rate products at 65, 70 and 75 per cent loan-to-values.
All products will be available from today (12 August) via registered mortgage intermediaries.
Three-year residential fixed rates are now available from 1.79 per cent at 65 per cent LTV, while five-year fixes come in at 2.09 per cent at 65 per cent LTV, both with a £995 product fee.
Changes to three-year residential fixed rates | |
| Fixed rate at 65% LTV | 1.79% (£995 product fee) |
| Fixed rate at 70% LTV | 1.98% (£995 product fee) |
| Fixed rate at 75% LTV | 1.99% (£995 product fee) |
Changes to five-year residential fixed rates | |
| Fixed rate at 65% LTV | 2.09% (£995 product fee) |
| Fixed rate at 70% LTV | 2.29% (£995 product fee) |
| Fixed rate at 75% LTV | 2.34% (£995 product fee) |
Following the fixed rate or tracker period, the loan will revert to standard variable rate of 4.54 per cent for the life of the loan.
On ‘Everyday’ products, an early repayment charge will apply to the outstanding secured loan balance at the time of redemption. Any overpayments in excess of the 10 per cent annual allowance will also be subject to the ERC.
Peter Rogerson, Virgin Money’s commercial director for mortgages, said the rate cuts follow on from the bank's decision to pass on the full Bank of England base rate cut to customers paying its SVR.
At the end of last month, it saw underlying profit before tax increase by 53 per cent to £101.8m during the first six months of this year, on the back of mortgage balances rising 9 per cent higher to £27.7bn.
Gross mortgage lending of £4.3bn was 19 per cent higher than the first half of 2015, while net lending of £2.2bn in the first six months of this year was 29 per cent higher than the same period last year.
peter.walker@ft.com
