Virgin Money has updated its residential mortgage range this week, applying a number of reductions to a selection of its three and five year fixed rates.
As part of the new range, three year fixed rates will now be available from 1.79% at 65% loan to value (LTV), 1.98% at 70% LTV and 1.99% at 75% LTV – all with a £995 product fee.
Five year fixed rates, on the other hand, now start from 2.09% at 65% LTV, 2.29% at 70% LTV or 2.34% up to 75% LTV.
The latest updates follow the lender’s decision to pass on the full benefit of the Bank of England base rate cut to borrowers.
Elsewhere, Accord has also launched a new selection of tracker mortgages, which come with no early repayment charges (ERCs). These two year trackers are now available with a rate of 2.69% up to 65% LTV or 2.9% up to 75% LTV, both of which come with a £300 product fee.
The mortgages will now be tracking the newly-cut base rate for two years. As far as buy to let mortgages are concerned, rates will revert to a discounted rate of 3.79% at the end of a two year term (1.75% below Accord’s SVR at the time) for a further three years.
These all come with free standard valuation for remortgages and standard legal fees.
Accord’s trackers are designed to not tie-in landlords to their mortgage, with the further support of a discounted reversion rate. This should allow for an extended period of flexibility, with the bonus of no early repayment charges, so they can regularly review their options if need-be.
Also following the Bank of England base-rate cut, Barclays has reduced the rate it uses to stress test residential borrowers by 0.25%. The lender’s new stress test rate now stands at 6.74% with immediate effect, applying to general residential cases including the Help to Buy equity scheme, to improve residential mortgage affordability for borrowers.