There are changes in rates on some residential fixed and tracker rates, and reductions on some buy-to-let rates. In addition, a £750 cashback has been extended across the entire buy-to-let range.
The new two-year fixed rate has been set at 2.19 per cent, for customers looking for an LTV of 60 per cent. It has a maximum loan size of £300,000 and a £1095 product fee.
There are changes to the 70 per cent LTV product as a two-year fixed and tracker rate have been made available at 2.34 per cent, a reduction of 0.1 of a percentage point.
The three-year fixed and tracker rate were available at 2.39 per cent, a drop of 0.15 of a percentage point and the fve year fixed rate at 2.89 per cent, a discount of 0.05 of a percentage point. All three 70 per cent LTV products come with a product fee of £995.
The two year fixed rate on the buy-to-let range is payable at 3.75 per cent, a reduction of 0.54 of a percentage point, and the two-year fixed rate is available at 4.09 per cent.
Provider view:
Richard Tugwell, director of intermediary relationships at Virgin Money said: “We’re delighted to announce these changes to our mortgage range, including the new exclusive product for intermediaries. This new deal demonstrate our commitment to offer attractive products to customers, and to put the relationships with our intermediary partners at the heart
of our mortgage business.”
Charges
For the residential mortgages there is a fee of £995; the buy-to-let mortgages the fees vary from £1,995 to 2 per cent of the total, depending on the rate being paid. For example the two year fixed of 3.55 per cent rate at 60 per cent LTV at 3.55 per cent incurs a charge of £1,995; at 3.75 per cent it is £995, at 3.39 per cent it is 2.5 per cent and 4.09 per cent rate the fee is 2 per cent. A payment of 5.09 per cent incurs a fee saver option.
Following the fixed rate or tracker period, the loan will revert to Virgin Money’s SVR, currently 4.79 per cent, and there will be an early repayment charge for eraly redepmtion on Everyday products.
Adviser view:
Graham Taylor, sole trader IFA at Glasgow-based Taylors Independent Financial Advisers, said: “The Virgin range is fairly keenly priced. The arrangement fees are pretty much in line with competitors and in some cases, better. The two-year fixed and tracker deals are a point or so above Nationwide, but with an SVR of 4.74 per cent, the Nationwide has the edge.
