Virgin Money is set to increase fixed mortgage rates and withdraw several products, impacting a wide range of borrowers.
- Effective from 8pm today, new purchase, remortgage, and buy-to-let products will see rate increases of up to 0.25%.
- Fixed rates for new purchases will rise, with 2-year and 5-year options seeing hikes of up to 0.15%.
- Shared Ownership and high-value loans are also affected by rate adjustments, with increases starting at 0.10%.
- Selected products, including various exclusive purchase rates, are being withdrawn from the market.
Virgin Money is making significant changes to its mortgage offerings, with increases in fixed rates and the removal of certain products, affecting a broad spectrum of customers. From 8pm today, mortgage rates will rise across various categories, including new purchases, remortgages, and buy-to-let (BTL) loans. The adjustments affect many, looking to secure or refinance homes across different price ranges.
For those purchasing new properties, the rate changes are pronounced. Virgin Money’s 2-year and 5-year fixed rates will see an increase of up to 0.15%, beginning at 4.29%. The rates for Shared Ownership will rise by 0.10%, starting at 4.22%. For high-value loans exceeding £1 million, the changes are even steeper, with rates rising by 0.20%, starting at 4.44%. This includes Retrofit Boost rates, designed to encourage eco-friendly home improvements, which will escalate by up to 0.20%, now commencing at 4.64%.
Remortgage seekers will not escape the impact of these increases. Fixed rates for 2-year and 5-year products, dependent on loan-to-value (LTV) ratios of 65% to 75%, will increase by up to 0.14%, starting at 4.24%. High-value remortgages stand to see hikes up to 0.15%, beginning at 4.55%. Retrofit Boost remortgage options will rise similarly by up to 0.20%, with initial rates set at 4.64%.
Customers interested in buy-to-let investments will also experience adjustments, with 2-year and 5-year fixed products incurring higher rates. Depending on fee structures, rate hikes range from 0.10% to 0.20%, with starting rates ranging from 3.67% to 4.80%. The BTL Retrofit Boost follows suit, increasing by up to 0.20%, with rates kicking off at 4.78%.
In addition to raising rates, Virgin Money is withdrawing certain lending products. These include the 80% LTV Exclusive Purchase 2-year rate with an £895 fee and similar fee-saver options. Other 5-year options at the 80% LTV Exclusive Purchase level, once popular, have also been removed from availability, signalling a strategic shift in Virgin Money’s offerings.
Brokers and customers wishing to keep any of the soon-to-be-removed products need to act quickly, with the deadline for applications set at 8pm today. This withdrawal makes it critical for interested parties to finalise their paperwork promptly in order to secure these options before they disappear entirely.
Today marks a pivotal transition in Virgin Money’s lending approach, with notable rate increases and product withdrawals.
