Available from today, the product range also features a two-year residential fixed rate up to 90% LTV at 2.84% for first-time buyers with no fee and £1,000 cashback. The lender is also offering a five-year residential loan up to 65% LTV at 1.89% and a five-year Help to Buy Equity mortgage at up to 75% LTV at 2.59% with no fee and £500 cashback.
Meanwhile, the lender has launched a two-year flexible tracker up to 65% LTV at 1.69% with a £995 fee and free valuation and legal fees for remortgages. It has also launched a two-year fixed rate at 60% LTV now at 1.59% with a £1,995 product fee and £500 cashback.
Peter Rogerson (pictured), Virgin Money’s commercial director for mortgages, said: “To kick off the year we have launched a new range of red hot mortgage products that offer competitive rates to help home buyers get onto the property ladder, support those looking to move home and a great deal for landlords.”
Moneyfacts confirmed the average two year fixed rate continued to trend downwards to hit a 12-month low of 2.31% today, down from a high over the same period of 2.59%.
Moneyfacts finance expert Charlotte Nelson said rates have been sliding downwards for 12 months, fuelled further by the Term Funding Scheme announced by the central bank in August.
“Competition in the mortgage market remains, so it’s likely we’ll see low rates for a while yet as banks need to show the central bank they are lending and low rates are the best way to do that, however, the record lows we saw last year are unlikely to be repeated,” said Nelson.