In a dynamic move that’s sure to ripple through the UK’s mortgage market, Virgin Money has made significant cuts to its fixed mortgage rates, propelling itself into the leading position with a competitive five-year fixed rate for home purchases.
Starting tomorrow, 18 October, new customers can avail themselves of a five-year fixed rate at an unprecedented 4.71%, a deal that’s applicable for those with a 35% deposit or equity. This market-leading offer does come with a £1,295 arrangement fee, but it undercuts Halifax’s recent offer, which was previously a chart-topper at 4.73%.
More Than Just Purchase Deals
Virgin Money isn’t just focusing on new home buyers. Those looking to remortgage can explore a five-year fixed rate at 4.85% (60% LTV), accompanied by a more modest £995 fee, standing as the best deal of its kind currently on the market.
What’s more, the bank is rolling out exclusive, fee-free purchase deals through brokers, starting from 4.87% (65% LTV) for a five-year fixed rate. They haven’t forgotten about buy-to-let customers either, with selected fixed rates being reduced and a five-year deal being dangled at an attractive 5.31% (75% LTV).
A Bonanza of Rate Reductions
In a broader sweep of rate reductions, Virgin Money has pruned its two-year purchase and remortgage rates. For instance, a two-year fix for remortgaging now sits at 5.26% (60% LTV) with a £995 fee, and they’ve also pared back on their fee-free deals.
Not to be overlooked, existing customers haven’t been left out in the cold. Product transfer deals are seeing reductions of up to 0.26 percentage points, ushering in new five-year fixed rate deals starting from 4.89%.
Other Banks Follow Suit
The Co-operative Bank isn’t staying on the sidelines, announcing rate reductions up to a substantial 0.47 percentage points. Starting tomorrow, they’re offering a five-year fixed rate deal for both purchase and remortgage at 4.92%, with a standard fee of £999. For those with larger mortgages, there’s a similar deal at 4.86%, albeit with a higher £1,999 fee, catering to loans of at least £650,000. Both deals demand a minimum 40% equity or deposit.
Additionally, they’re introducing two-year fixed rates for purchase or remortgage starting from 5.1%, three-year rates from 5.09%, and another set of five-year rates at 4.92%, with all these options set at a 60% loan to value and requiring a £999 fee.
Barclays Enters the Fray
Barclays is also joining the action, announcing cuts up to 0.2 percentage points across selected fixed mortgage rates for its residential and buy-to-let ranges. Among the notable new deals is a five-year fixed rate at 5.43% (85% LTV) and a fee-free “Great Escape” offer at 5.65% (also at 85% LTV).
For Premier Banking clients, there’s a tailored five-year fix at 5.24% (60% LTV) with a £999 fee. First-time buyers aren’t left out, with the five-year, fee-free “Springboard” mortgage deal (at a high 95% LTV) seeing a rate decrease from 6.84% to a slightly more manageable 6.64%.