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Virgin reduces mortgage rates as share trading begins

by: Paul Robertson
  • 18/11/2014
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Virgin Money has reduced rates across its mortgage range, available with immediate effect, as unconditional trading in the firms shares begins after last week's float.

Changes include a two-year tracker at 80% LTV at 2.19% – a reduction of 0.96%, a two-year fixed rate at 85% LTV at 2.74% – a reduction of 0.21% and a five-year fixed rate at 75% LTV at 3.04% – a reduction of 0.45%. All attracting a product fee of £995.

There is also a five-year fixed rate at 90% LTV at 4.49% with no product fee, which is a reduction of 0.40%.

Key changes to the range include a two-year fixed rate at 65% LTV at 1.69%, with a £1,495 product fee.

This is for remortgage customers only, with a purchase rate available at 1.79%

Virgin is offering a two-year fixed rate at 75% LTV at 1.84%, with a £995 product fee for remortgage customers only with a purchase rate of 1.93%.

Virgin Money is also increasing the amount of cashback it pays on its buy-to-let intermediary exclusives from £250 to £500.

Virgin Money Holdings share price was relatively unchanged, at around 283 pence, on its first day of conditional trading after raising £312m in an initial public offering (IPO) delayed by a month due to equity market conditions.

However experts have put this down to market sentiment, rather than any flaws with the Virgin IPO.

Darren Hepworth, director of global trading at TD Direct Investing, said: “Investor interest in Virgin Money’s stock still remains stubbornly low since the conditional trading window last Thursday.

“However, as opposed to this being evidence of any specific flaws around the float, we are seeing a more conservative approach from traders across financial and banking stocks more broadly – an approach which indicates a wider stabilisation of the banking sector that may well also be driving investor motivation with respect to Virgin Money.”

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