Virgin reduces BTL and residential rates by up to 0.6%

by: Carmen Reichman
  • 04/10/2016
  • 0
Virgin reduces BTL and residential rates by up to 0.6%
Virgin Money has reduced the rates of its buy to let (BTL) and residential fixed-rate products by up to 0.6% in a bid to remain “attractive” to its clients.

The lender now offers a two-year fixed rate mortgage for buy to let at 2.09% for up to 70% loan to value (LTV), alongside a five-year fix at 3.24% and a two-year tracker at 2.29%. The tracker rate will be available at up to 75% LTV.

All products come with Virgin’s £500 cashback incentive for purchases. The two-year fix will also incur a £1,995 product fee, while the others come with a fee of £995.

The lender said it wanted to remain competitive in the “growing” market.

Commercial director for mortgages Peter Rogerson (pictured) said: “The reductions we have made to our range ensure that we continue to offer attractive options for purchase and remortgage customers looking for residential and buy-to-let loans at a range of different deposit levels.

“We think these products will be well-received by the market which remains upbeat, as reflected in our recent poll of intermediaries where nearly 80% said they expect the mortgage market to grow in 2017.”

Reductions in its residential mortgages include a new 4.19% five-year fix at 95% LTV; 3.19% at 85% LTV; and 2.18% at 65% LTV.

The three-year fixes have been reduced to 1.89% at 80% LTV; 1.84% at 75% LTV; and 1.79% at 70% LTV – all with a £995 product fee.

Once loans exceed the fixed-rate or tracker periods, they revert to the lender’s Standard Variable Rate, which is currently 4.74% for buy to let and 4.54% for residential.

The listed-lender reported a mortgage lending growth of 19% in H1 of this year, when it lent £4.3bn to clients.

This handed the bank a gross mortgage lending market share of 3.6%. At the time it had a mortgage book which was 82% residential and 18% buy to let .

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