Mortgages  

Virgin Money targets advisers with BTL offer

Virgin Money has introduced a new range of buy-to-let mortgages at 60 per cent LTV, available exclusively through intermediaries.

Two-year and five-year fixes are priced at 2.19 per cent and 3.24 per cent with a £1,995 product fee respectively.

In addition, two-year tracker loans are available at the Bank of England base rate – currently set at 0.5 per cent - plus 1.79 percentage points. The current rate is 2.29 per cent. The product also comes with a £995 product fee.

Article continues after advert

The range of buy-to-let loans comes with £500 cashback.

In addition, the lender has discounted rates on a number of its residential fixes at higher LTV levels.

At 85 per cent, three-year fixes have been reduced by 0.07 percentage point to 2.48 per cent, while the rate for the lender’s five-year fix has been lowered by 0.05 percentage point to 3.03 per cent.

A £995 product fee and £300 cashback is applicable to both deals.

For lenders with a 10 per cent deposit, three-year fixes has been reduced by 0.20 of a percentage point to 3.25 per cent, with a £995 product fee, £500 cashback for first time buyers and £300 cashback for home movers.

Five-year fixes are now available at 3.55 per cent – also with £995 product fee, £500 cashback for first-time buyers and £300 cashback for home movers.

Provider view

Peter Rogerson, commercial director for mortgages at Virgin Money said: “We are delighted to announce these latest reductions to our higher LTV range, helping borrowers with smaller deposits. Virgin Money remains committed to ensuring our intermediary partners have access to our most attractive mortgages, and the new range of buy-to-let products continues to deliver on that promise.”

Adviser view

Commenting on the two-year fixed rate buy-to-let loan, James Carter, principal for London-based Independent James, said: “The deal seems reasonable – it would be especially attractive for borrowers who are looking to secure a high amount.

“It is interesting that the two-year tracker deal has a higher rate of interest than the fixed rate product. You would have expected it to be the other way round because there is a greater risk of interest going up than down.

He added: “A number of lenders are struggling to cope with the volume of enquiries going through their branches, so making the product available exclusively through the intermediary channel is unsurprising. Lenders are always looking to adjust the level of business generated through the channel.

“I have had dealings with Virgin Money in the past. I think they are fine - I have had no issues with them.”

Charges

Ranges from £995 to £1,995

Verdict

The price war within the mortgage marketplace appears to have slowed down – a far cry from how it was during the summer months. In fact, a number of lenders have decided to go the other way and up rates on their products.

Here, the fixed rate BTL fixes are competitive – despite the high product fee. So too are the range of residential mortgages. The higher LTVs seem tailored to attract business from first time buyers. The cashback offers are also a welcome addition.