Buy-to-let customers had previously reverted to the lender’s standard variable rate (SVR) of 4.79% following the end of any fixed rate period but will now be placed on Virgin Money’s buy-to-let variable rate of 4.99%.
This new SVR matches the current revert-to rate offered by The Mortgage Works but is higher than both BM Solutions (4.84%) and Godiva mortgages (4.74%).
All existing buy-to-let customers will continue to transfer to the 4.79% SVR, as will both new and existing residential customers.
Virgin Money told Mortgage Solutions the changes brought its buy-to-let proposition into line with other lenders.
Peter Rogerson, commercial director for mortgages and savings at Virgin Money, said: “Buy-to-let is an important segment of the mortgage market, and is becoming increasingly important to Virgin Money.
“These mortgages have a different risk profile from residential lending which is why many lenders have a separate revert rate from residential loans. We believe this is a sensible approach, and so all our new buy-to-let mortgages will include this feature. There are no changes for existing customers.”
Virgin has also completely refreshed its buy-to-let mortgage offering to coincide with the changes.
