Borrowers can switch to a new deal after two years with the Virgin Money Fix and Switch product which is only available through intermediaries.
The product is available at 85 and 90 per cent loan to value (LTV) with rates of 5.14 per cent and 5.27 per cent respectively. There is no product fee and it offers a £500 cashback incentive.
Affordability for the mortgage will be based on a five-year fix.
David Hollingworth, associate director at L&C Mortgages said: “The mortgage market has provided so many ups and downs in the last couple of years that it’s understandable that borrowers will be struggling to decide on the best approach.
“Virgin Money’s innovative product offers an alternative and welcome solution to those that feel there’s room for rates to improve over the next couple of years but don’t want to be caught out if the outlook shifts again. There will no doubt be customers attracted to the ongoing certainty of rate if required but with the flexibility to review in two years.”
Virgin Money: ‘Fix and Switch provides certainty and flexibility’
Craig Calder (pictured), head of secured lending at Virgin Money, said: “In today’s higher interest rate environment, many mortgage borrowers are looking for long-term payment certainty, but don’t want to be tied in for the long term.
“Fix and Switch is the perfect solution for them, providing the certainty of a five-year fixed rate with the flexibility of a two-year ERC if rates begin to fall.”
