Virgin Money is making changes to its mortgage rates, with some borrowers set to benefit from cuts while others face higher costs.

From today (19th September), the lender is cutting rates on some of its residential and buy-to-let mortgages. The biggest winners will be first-time buyers and those with smaller deposits, who could see their mortgage rate fall by as much as 0.2%.

Here’s a breakdown of the changes:

For Homebuyers

• Exclusive rates for those borrowing 80% of their property’s value will be reduced by up to 0.16%, with rates now starting from 4.12%. This could mean significant savings for borrowers with smaller deposits.
• Selected shared ownership mortgage rates will also be reduced by up to 0.2%, again starting from 4.12%. This will be welcome news for those looking to get on the property ladder through shared ownership schemes.

For Existing Homeowners

• Exclusive rates for remortgaging at 80% loan-to-value will be reduced by up to 0.10%, with rates starting from 4.43%. This could be a good opportunity for homeowners looking to secure a better deal when their current mortgage comes to an end.

For Buy-to-Let Landlords

• ‘Fix and Switch’ rates (where you move to a new deal with the same lender) will be reduced by up to 0.18%, starting from 4.74%. This could be an attractive option for landlords looking for payment stability.
• Selected 60% and 75% loan-to-value rates with a 1% fee will be reduced by up to 0.17%, to 4.17%. This offers a competitive rate for landlords with larger deposits.
• Selected product transfer rates for buy-to-let mortgages will be reduced by up to 0.13%, starting from 3.99%. This allows existing landlords to switch to a cheaper deal without the hassle of a full remortgage.

However, it’s not all good news. Virgin Money is also increasing rates on some of its buy-to-let mortgages from this evening (18th September):

• Five-year fixed-rate buy-to-let mortgages at 80% loan-to-value with a £995 fee will increase by 0.2% to 5.27%.
• Five-year fixed-rate buy-to-let mortgages at 80% loan-to-value with a 1% fee will also increase by 0.2% to 5.20%.

What does this mean for you?

These changes highlight the constantly shifting landscape of the mortgage market. If you’re thinking about buying or remortgaging a property, it’s more important than ever to shop around and compare deals from different lenders. Don’t forget to factor in any fees as these can vary significantly. Speaking to an independent mortgage broker can also be helpful in finding the best deal for your circumstances.