Customers with low deposits can enjoy 0.20 per cent and 0.25 per cent reductions on mortgage rates.
For 90 per cent loan-to-value, Virgin Money’s two-year fixed rate is 4.29 per cent and its three-year fixed rate is 4.68 per cent.
For a two-year fixed rate mortgage with 85 per cent LTV, there is a £995 product fee, while the interest rate has been reduced by 0.25 per cent to 3.23 per cent.
There are up to 40 per cent reductions on buy-to-let mortgages.
Virgin Money’s two-year tracker with 60 per cent LTV has been reduced to 2.69 per cent, and its 75 per cent LTV product has been reduced to 3.39 per cent.
The product fee for these two-year tracker products are £995.
The provider’s buy-to-let range also includes a two-year fixed rate at 2.99 per cent up to 60 per cent LTV, and a three-year fixed rate at 3.19 per cent up to 60 per cent LTV, which both come with a £1,995 product fee.
Virgin Money has also introduced new buy-to-let intermediary exclusives.
For 60 per cent LTV, its two-year fixed rates are 2.79 per cent and 2.99 per cent respectively, with product fees of £1,995 and £1,495.
REACTIONS
PROVIDER VIEW
Peter Rogerson, director of Virgin Money savings and mortgages, said: “We are delighted to make these changes to our mortgage products. The range has something for everyone, and the rate reductions are particularly beneficial for people with smaller deposits and buy-to-let investors.”
ADVISER VIEW
Gary Matthews, chartered financial planner of Shropshire-based Matrix Capital, said: “There is a trend just now for slightly keener rates across the market as lenders grapple with regulation changes since April, recent restrictions on lending multiples, and a set 3 per cent over base stress test from the Bank of England. A number of the ‘traditional go- to’ lenders seem to have lost their domination of the top slots on the mortgage sourcing systems probably as they all jostle for borrowers in what is still a difficult market.
“Virgin Money follows some of the other lenders in rate reductions, despite the spectre of higher interest rates now starting to gather pace as the economic conditions continue to improve.
Lenders continue to favour those with a larger deposit and the ‘unregulated’ buy-to-let space continues to look more attractive to lenders and borrowers alike.
“However, any downward pressure on costs must be good for the consumer but may not last too much longer before rates start to climb again.”
CHARGES
Product fees range from free to £995, £1,495 and £1,995. Following the fixed rate or tracker period, the loan will revert to Virgin Money’s standard variable rate, which was at 4.79 per cent at its date of release.
VERDICT
The products offer competitive rates, especially for customers with low deposits. However, they need to be aware that the interest rates may start to climb again in the near future.
