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Virgin Money pulls products; Nationwide adjusts rates – round-up

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  • 31/03/2022
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Virgin Money pulls products; Nationwide adjusts rates – round-up
Nationwide has made changes to its new business and switcher ranges and Virgin Money has altered its exclusive, core and buy-to-let (BTL) ranges.

Virgin Money said that all exclusive rates will be withdrawn, barring its residential 80 per cent loan to value (LTV) fixed rates, which will be increased by up to 0.4 per cent.

All the lender’s core fixed rate offerings between 65 and 85 per cent LTV will go up by between 0.15 and 0.35 per cent.

Selected 90 per cent LTV fixed rates will be increased by up to 0.2 per cent, and all BTL fixed rates will rise by between 0.1 and 0.3 per cent.

The changes to some of Virgin Money’s residential BTL mortgages take effect from Thursday 31 March at 8pm.

Nationwide makes changes to new business and switcher ranges

Nationwide is making changes across its fixed term new business and switcher ranges, as well as adding to a range of early repayment charges (ERC) on fixed rate products. These changes will come into effect from Friday 1 April.

The mutual has told customers that they need to submit a decision in principle (DIP) by 5pm today to reserve existing products.

New business rates for two and three-year fixed rates with no fee at 95 per cent LTV in its member moving range are going down to 2.79 per cent. Its £999-fee version has fallen to 2.69 per cent.

First-time buyer products are seeing a similar drop at the 95 per cent LTV tier, with prices for two and three-year fixed rates with a £999 fee coming to 2.64 per cent, and 2.79 per cent with no fee.

The lender has reduced existing business rates at 95 per cent LTV for both two and three-year fixed rate terms to 2.64 and 2.79 per cent respectively. It has also cut prices for its switcher products at the same LTV.

However, rates have been increased for select switcher products between 60 and 85 per cent LTV, with fee-paying rates starting from 2.14 per cent and no-fee rates starting from 2.34 per cent . Select switcher rates will rise, including its no-fee five-year fixed rates between 60 and 85 per cent LTV which will start from 2.49 per cent.

Additional borrowing rates are also increasing with two and three-year fixed rates between 60 and 85 per cent LTV starting from 2.34 per cent, and five-year fixed rates at the same LTVs will start from 2.49 per cent.

Nationwide also updated its ERC structure, which now increases the threshold for repayments by between 0.25 per cent and 1.25 per cent payable per year, including a six per cent payable ERC for the first five years of a 10-year fixed rate mortgage.

A Nationwide spokesperson said: “We regularly review our Early Repayment Charges on both our residential and buy-to-let mortgages and have made a small increase to the ERCs on a number of fixed term products from 1 April. Even with these changes, the Society’s and TMW’s ERCs remain amongst the lowest in the market.”

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