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Virgin raises all high LTV rates by 0.3 per cent and Saffron pulls deals

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  • 28/08/2020
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Virgin raises all high LTV rates by 0.3 per cent and Saffron pulls deals
Virgin Money has increased rates on its residential and buy-to-let products while Saffron Building Society has pulled deals at 80 per cent loan to value (LTV) to manage business volumes.

 

From today, Virgin has increased rates on fixed rate mortgages above 75 per cent LTV by 0.3 per cent.

Lower risk products below 75 per cent LTV have seen rises of 0.2 per cent.

Its buy to let product rates have also seen a 0.2 per cent rise as has its shared ownership deals. 

The lender said these changes were made to allow it to service existing and pipeline customers. 

A spokesperson for Virgin said: “Following high demand we’ve made changes to existing residential and buy to let rates to help service existing clients and manage pipeline applications. We keep our products under constant review and these changes will allow us to balance demand with providing the best level of customer service.”

 

Saffron BS 

Saffron Building Society will withdraw two fixed rate mortgages at 80 per cent LTV on 3 September. 

These include the two-year fix and the two-year retro fit mortgage which rewards borrowers with a cheap rate for making eco-friendly changes to their home. Both deals have rates of 1.47 per cent. 

The mutual said in order for these products to be secured before withdrawal, a full mortgage application with the £999 fee paid was required. 

These are the second and third 80 per cent LTV mortgages to be pulled, as earlier this week the mutual removed the five-year fix which had a rate of 1.77 per cent. 

Saffron warned it was experiencing a high number of telephone and email enquiries, urging brokers not to repeat voicemails to the business development (BDM) team to allow them to respond sooner. 

It also said the BDM team were responding to emails and calls on the same working day. 

It advised that decision in principle referrals would be looked at within seven days and said underwriters were processing new and existing applications at a 12 working day service level agreement. 

Saffron asked brokers not to contact the processing team for an update unless an application has fallen outside the 12 working day timeframe. 

John Penberthy-Smith, CCO of Saffron Building Society, said: “The removal of the 80 per cent LTV products on at 5pm on Wednesday evening is to make way for new products that will be launching very soon – to bring them more in line with the current market.

“At Saffron we always aim to provide competitive products to our intermediaries, but in the current economic climate products will be subject to regular review.”

He added: “We are equally offering other products with fee discounts, like self-build products currently on sale with a fee reduction until further notice. We will keep our partners informed as new and amended products are due to be launched.”

 

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