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Virgin launches ‘three for two’ mortgage and Castle Trust releases 10-year loan – round up

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  • 07/01/2020
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Virgin launches ‘three for two’ mortgage and Castle Trust releases 10-year loan – round up
Virgin Money has launched residential and buy-to-let three-year fixed deals at the same rate as its two-year fixes and has cut rates.

 

The new rates are a three-year residential fixed at 90 per cent loan to value (LTV) at the two-year rate of 2.13 per cent, reduced from 2.4 per cent, with no product fee. As well, the buy-to-let three-year fixed rate at 75 per cent LTV matches the two-year fixed rate of 1.56 per cent, down from 2.09 per cent, with a £1,995 fee. 

The residential rate reductions include a new intermediary exclusive five-year fix at 1.49 per cent at 65 per cent LTV with a £1,495 fee. The deal offers £300 cashback for purchasers while remortgage customers will receive free valuation and legal fees. 

Furthermore, the three-year fixed rate up to 85 per cent LTV has been reduced to 2.13 per cent, cut from 2.31 per cent, with no product fee. The five-year fixed rate up to 90 per cent LTV and no product fee has been reduced from 2.4 per cent to 2.34 per cent. 

Virgin Money’s shared ownership two-year fixed rate up to 95 per cent LTV has seen a cut to 3.27 per cent from 3.54 per cent and has no product fee. 

Its seven, 10 and 15-year fixed rate ranges have been simplified to LTV rates of 65 per cent and 90 per cent with the 90 per cent LTV tier now reflecting the original 75 per cent LTV rates. 

Selected Help To Buy equity loans at 55 per cent and 75 per cent LTV rates have been reduced by up to 0.40 per cent. 

The buy-to-let changes include a two-year fix up to 80 per cent LTV reduced from 3.3 per cent to 3.25 per cent with a £995 fee. The three-year fix, up to 60 per cent LTV, has been cut from 1.74 per cent to 1.56 per cent with a £1,995 fee. 

Selected five-year fixed rate 60 to 80 per cent LTV products were reduced by up to 0.15 per cent. 

Andrew Asaam (pictured), head of mortgages for Virgin Money, said: “We’re delighted to launch these special offers and hope they will help more customers. 

“By launching the new ‘three for two’ rates we’re offering customers an extra year’s peace of mind for no additional cost.” 

 

 

Castle Trust launches 10-year term loan 

Castle Trust has launched TermTen, a ten-year term loan that is fixed for five years before reverting to a standard variable rate (SVR). 

This is longer than the bridging lender’s typical loan term of five years and the product reverts to a rate of 6.49 per cent, different to Castle Trust’s SVR rate of 5.99 per cent.

Annualised rates on TermTen start at 4.49 per cent and there are no early repayment charges (ERCs) after the fixed five years. The product comes with serviced interest and a maximum LTV of 75 per cent although the lender does offer 80 per cent for loans of £500,000 or less.  

The minimum loan size on TermTen is £50,000 and the maximum loan size is £15m. 

The loans are available for holiday lets, multiple properties on a single title, student lets, portfolio loans and property refurbishment. 

Marcus Dussard, sales director at Castle Trust, said: “We have seen increasing demand from property investors for loans that deliver the flexibility and lending appetite of traditional bridging, but with longer terms to provide peace of mind.  

“The market is changing, and while there remain plenty of opportunities for investors, those opportunities tend to be longer term – with a flat property market and stagnant house prices providing little for short-term investors to get excited about. 

Dussard said TermTen had been developed as a direct response to the increased demand to offer investors the safety of a ten-year term while also giving them the flexibility to refinance penalty-free after five years.  

He said: “We will also be able to provide an exit to the loan, to provide clients with multiple options throughout the ten-year term.” 

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