Many lenders have been tapping into the buy to let market recently, and as such, Virgin Money has launched a new intermediary exclusive to buy to let customers with rates starting from just 1.84%. The lender has equally reduced selected residential fixed rates, which includes a 2 year fixed rate with a 60% loan to value (LTV) at 1.84% and a 5 year 60% LTV fixed rate at 2.99%.
The lender has also revealed that it will now be increasing cashback on all Virgin Money buy to let intermediaries from £500 to £750 for a limited period only.
The changes don’t stop there, however, as the lender has ensured that residential mortgage customers are not losing out, with the launch of reduced fixed rates starting from 2.63%. The latest range includes two year fixed rates at 90% LTV now starting from 2.63% – a figure which is down by 0.25%. This also includes three year fixed rates at a 90% LTV from 3.13% – down by 0.31% – and five year fixed rates at 90% LTV from 3.45%, reduced by up to 0.21%.
The products included in the Virgin Money buy to let intermediaries range all come with a product fee of £995, with £300 cashback for purchases and £500 for first time buyers. Not only this, the lender has most recently released a reduced two year fixed mortgage priced at 2.52%. The offer is available to all customers borrowing up to £1m at 80% LTV, with no fee payable and an incentive package for remortgage customers.
These changes follow recent reports that Virgin Money has experienced a surge in mortgage lending this year, with its share of gross mortgage lending reaching 3.5% of the total market. This figure has risen by 38% in the nine months to the end of September, while net mortgage lending almost doubled to £2.6bn from the previous year.
First Direct has also launched a new 2.19% 5 year fixed rate, as well as cutting a number of its fixed rate residential mortgages. The lender’s latest products include 2 year fixed rates at 1.24% up to 60% LTV and 1.39% at 75% – both with a £1450 fee, as well as offering a 1.74% tracker at 60% LTV – 0.25% down from the previous rate of 1.99%. Five year fixes now start from 2.19% and 60% LTV and 2.48% at 75% LTV.