Virgin Money Makes Major Mortgage Rate Cuts

Virgin Money is reducing rates on selected fixed-rate mortgages, which are popular choices for buyers. Here’s a breakdown of the changes:

85% & 90% Loan-to-Value (LTV) Mortgages: Rates for 2- and 5-year fixed terms with a £1,295 fee are being cut by up to 0.10%, starting from 4.58%.
Fee-Saver Options: The 85% and 90% LTV 2- and 5-year fixed rate fee-saver mortgages will see reductions of up to 0.12%, starting from 4.74%.

For Remortgaging

Those looking to switch their mortgage to Virgin Money will also benefit:

60% LTV 2-Year Fixed Rate: This product now offers a rate of 4.59% after a 0.20% reduction.
70% LTV 2-Year Fixed Rate: Similarly, this product’s rate has been reduced by 0.20% to 4.69%.

Buy-to-Let (BTL) Options

Landlords aren’t left out, with cuts in the BTL category:

2 & 5-Year Fixed Rates: With a £2,195 fee, these rates start from 4.59% following a 0.05% cut.
5-Year Fixed Rates with a 1% Fee: These have seen reductions of up to 0.32%, starting from 4.74%.

Additional Cuts

Core Fixed Rates: Selected purchase and remortgage core fixed rates are down by up to 0.36%, starting from 4.54%.
Product Transfer Rates: Residential and BTL product transfer fixed rates have also been reduced by up to 0.30%, starting at 4.66%.

Industry Reactions

Positive Outlook

Brokers across the UK have welcomed Virgin Money’s decision. Charles Breen from Montgomery Financial humorously notes that it feels like Christmas for homeowners and potential buyers. Michelle Lawson of Lawson Financial sees this as a positive end to the year, especially considering the challenging economic landscape.

Justin Moy from EHF Mortgages believes these cuts will prompt other lenders to reevaluate their rates. Tom McNulty of Gloucester Mortgage Centre sees this as a sign of lenders’ confidence in the market, predicting a busier 2024 for the property market.

Katy Eatenton from Lifetime Wealth Management highlights the competitive nature of the market, especially following HSBC’s similar announcement.

A Note of Caution

However, not all reactions are entirely optimistic. Rohit Kohli from The Mortgage Stop expresses some skepticism about the longevity of these reduced rates, wondering if they are just a seasonal promotion.

Stephen Perkins of Yellow Brick Mortgages describes the cuts as “tasty trimmings,” suggesting they’re beneficial but not game-changing. Matthew Jackson from Mint FS views this as a positive end to a year that has seen more downs than ups in the mortgage market.