The changes will come into effect from 21 August. 

This includes a two-year fixed rate deal at 85% loan to value (LTV) with a £999 fee, which has been cut from 5.22% to 5.07%. 

The fee-free alternative has been reduced from 5.43% to 5.28%. 

At the same lending tier, the five-year fixed rate option with a £999 fee has been lowered from 4.94% to 4.79%, while the fee-free deal has been cut from 5.03% to 4.88%. 

These changes follow reductions made by Barclays earlier this month, which saw the lender bring in a sub-4% mortgage rate for borrowers purchasing a home. 

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Virgin Money reduces BTL mortgage rates 

Virgin Money has made reductions across its buy-to-let (BTL) mortgage rates, with cuts of up to 0.15%. 

The largest reductions apply to the lender’s product transfer deals, with rates now starting from 4.17%. 

Across its exclusive range, a five-year fix at 60% LTV with a £2,195 fee has gone down from 4.34% to 4.31%. 

A two-year fix, also at 60% LTV and with a 1% fee, has been lowered by 0.08% to 4.69%. 

Virgin Money has also lowered a five-year fixed rate option at the same tier from 3.93% to 3.9%. This product has a 3% fee. 

At 75% LTV, there is a two-year fix with a 1% fee, which has gone down from 4.92% to 4.82%. At the same lending bracket, a five-year fixed product with a 5% fee has been lowered from 3.93% to 3.9%. 

Virgin Money has also lowered select BTL mortgage rates with a £995 fee by up to 0.15%, with rates now starting at 4.45%. 

Select fee-saver deals have been reduced by as much as 0.07% and now begin at 4.7%. 

The latest rate amendments come after Virgin Money introduced a mortgage priced at 3.99% last week, available at 75% LTV.