Mortgages  

Virgin Money updates buy-to-let range

Virgin Money updates buy-to-let range

Virgin Money has introduced a new range of intermediary exclusives and reduced selected core rates in its buy-to-let mortgage range.

Peter Rogerson, Virgin Money’s commercial director for mortgages, said that the firm has begun 2016 with improvements across its mortgage range, and these new products should offer landlords competitive rates, particularly for those with low LTVs.

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Key changes to the intermediary exclusives include a new two-year fixed rate at 50 per cent loan-to-value priced at 2.02 per cent. This is for remortgage only, with a £1,995 product fee and £500 cashback.

There is also a new five-year fixed rate at 50 per cent LTV at 3.09 per cent – also remortgage-only – with a £1,995 product fee and £500 cashback.

This comes alongside a new two-year fixed rate at 60 per cent LTV at 2.39 per cent, with a £995 product fee and £500 cashback.

In terms of the core buy-to-let range, the two-year fixed rate at 75 per cent LTV has been reduced to 2.54 per cent, with a £1,995 product fee and £500 cashback.

Finally, the two-year tracker at 60 per cent LTV is marked down to 2.09 per cent, with a £995 product fee and £500 cashback.

IFA VERDICT:
Bob Riach, principal at Riach Financial Advisers, said that not many people arrange buy-to-let mortgages at 50 per cent LTV, adding that the £1,995 product fee will be seen as high for many areas of the country.

He said: “Most buy-to-let clients arrange their mortgage on an interest-only basis, and if they added the £1,995 product fee onto the mortgage on this basis, they would be paying interest for the full term of the mortgage.”

peter.walker@ft.com