The changes applied to the lender’s residential range include 3 year fixed rates up to 65% loan to value (LTV) with a rate of 1.94% and 5 year fixes available at 2.24% up to 65% LTV, both with a £995 product fee. This 5 year fixed rate is also available at 2.44% with no product fee at 65% LTV.
Buy to let mortgage products have also been reduced, with a 2 year fixed rate at 60% LTV now available at 1.89%, 2.89% for a 3 year fixed rate at 75% LTV or 3.19% for a 5 year fixed rate at 70% LTV. All these rates come with a £1,995 product fee and £750 cashback.
As part of Virgin Money’s product revamp, the lender has also released 2 new buy to let intermediary exclusives for 2 year fixed rates at 50% LTV. The deal includes a rate of 1.87% for a 2 year fixed rate at 50% LTV, or 2.79% for a 5-year fix. These are both for remortgages only and come with a £1,995 product fee and £750 cashback.
These improved buy to let rates certainly suggest greater commitment to supporting all sectors of the mortgage market, especially since the tough criteria changes in the buy to let space, equally offering longer terms for landlords’ mortgage repayments and the additional £750 cashback incentive.
Virgin Money was not the only lender reducing its rates this week, however, with the Bank of Ireland launching 2 year fixed buy to let rates that have been cut by 0.32%. Rates now start from 1.97%, which also features a 60% LTV product with no fees for those remortgaging.
The lender also announced it will now pay the valuation fee on all new Help to Buy mortgages, as well as offering £400 cashback on completion. This is supposedly the lowest ‘no fee’ help to buy product currently on the market, with rates starting from just 3.74%. The lender has equally reduced rates by up to 0.2% and increased cashback from £300 to £400.