Virgin Money has announced reductions in interest rates on a host of its residential mortgage products and across its intermediary exclusive range.
The latter range has seen cuts to its two- and five-year fixed-rate loans at 65 per cent loan-to-value to 1.72 and 2.43 per cent, with a £1,495 product fee for both.
Two-year fixed-rate loans at 75 per cent LTV have been reduced to 1.88 per cent. There is also a special new-build rate mortgage fixed at 2.54 per cent over the same time period of up to 85 per cent LTV, with a £995 product fee and £500 cashback.
In addition, for a limited period Virgin Money has waived the £99 application fee on selected 65, 70 and 75 per cent LTV intermediary exclusive products.
In the larger loan intermediary exclusive range at 65 per cent LTV, two-year fixed-rate loans have been reduced to 1.55 per cent, while the five-year fixed-rate has been lowered to 2.35 per cent. Both have a £1,495 product fee.
The range has a minimum loan size of £150,000.
Two-year fixed-rate residential mortgages available to borrowers with a 15 per cent deposit have also been reduced to 2.59 per cent with a £995 product fee.
At 60 per cent LTV, two-year buy-to-let fixed loans have been cut to 2.39 per cent, and 3.55 per cent for five-year fixed rate.
The bank had previously kicked off the new year with a flurry of new deals on its mortgage range, including a reduction in residential fixed rates by up to 0.80 of a percentage point for customers with smaller deposits.
Peter Rogerson, Virgin Money’s mortgage director said: “The rate reductions we have announced today continue to reinforce Virgin Money’s commitment to all segments of the mortgage market and to our intermediaries. We have also waived the £99 application fee on selected low-LTV intermediary exclusive products. The improvements we have made will help customers benefit from some of the most competitive deals in the current market.”
Ian Gwinnell, director of Birmingham-based All Counties Financial, said: “In the past 20 years, we have seen interest rates for these types of products at five, six and even seven per cent. Now lenders are in the position to offer lower rates because of the lower cost of securing money.”
He added: “The product fee might be too steep. However, the fee is relative – it would be less significant for someone looking to buy a house worth £400,000 than it is for someone looking to purchase a property for half the amount.”
£1,995 product fee for both buy-to-let loans at 60 per cent LTV with £500 cashback
Cuts in fixed-rate mortgages appear to be the trend in the market, with a host of lenders slashing rates, and some providers opting to introduce a new competitive range in a bid to attract customers. Here, the interest rates are very competitive, but some might be put off by the product fee of just under £1,500. High fees are relative – those who require a large loan are more likely to be willing to pay the levy than those who require a smaller loan. It is important for this to be taken into account before a decision is made.