Natwest and Virgin Money increase tracker mortgage rates

Natwest and Virgin Money increase tracker mortgage rates

 

From 20 December, the 75 per cent loan to value (LTV) product will have a rate of 1.04 per cent. 

Natwest is among the many lenders who said there would be changes to their tracker mortgage rates and standard variable rates (SVR) after the Bank of England increased the base rate from its record low of 0.10 per cent to 0.25 per cent. 

This was the first increase to the base rate in three years. 

 

Virgin Money 

Virgin Money has also made changes to its tracker mortgages in light of the base rate change. 

The two-year tracker with no valuation or legal fees is now priced at 1.89 per cent at 65 per cent LTV, the 75 per cent LTV has a rate of 3.04 per cent and the 85 per cent LTV deal is priced at 3.84 per cent. 

The product transfer range which allows borrowers to transfer to a fixed rate deal with Virgin Money at any time without incurring fees has also increased. 

At 65 per cent LTV, the two-year tracker has a rate of 1.9 per cent while at 95 per cent LTV the equivalent has a rate of 3.4 per cent. 

These rates apply from today. 

Virgin Money brings out high LTV products with £1,000 cashback

Virgin Money brings out high LTV products with £1,000 cashback

 

This includes a five-year fixed rate at 85 per cent LTV at 1.99 per cent, and a 90 per cent LTV product priced at 2.38 per cent. Both come with a £995 fee.

The lender has also brought out a five-year fixed rate green shared ownership product with a rate of 2.4 per cent. It is subject to a £995 fee.

It has cut some of its higher LTV rates in its core range, including its two-year and five-year fixed rate fee-saver product at 95 per cent LTV now standing at 2.98 per cent and 3.03 per cent respectively.

Virgin Money has also decreased the rates for selected 85 to 90 per cent LTV products by up to 0.32 per cent.

This includes a two-year fixed rate at 85 per cent LTV which has gone from 1.89 per cent to 1.78 per cent. At the 90 per cent LTV tier, the rate has fallen from 2.04 per cent to 1.82 per cent.

The lender has also cut selected buy-to-let fixed rates by up to 0.14 per cent. An example of this is a five-year fix at 75 per cent LTV where the rate has gone from 1.93 per cent to 1.82 per cent.

In its shared ownership range, five-year fixed rates will start from 2.1 per cent, and products at 95 per cent LTV in this range will be reduced by 0.11 per cent.

Its two-year fixed rate at 95 per cent LTV has decreased from 3.79 per cent to 3.68 per cent, and its five-year fixed rate at the same LTV has been reduced from 3.99 per cent to 3.88 per cent.

Virgin Money mortgage credit head joins Generation Home

Virgin Money mortgage credit head joins Generation Home

 

Bridgman joins the lender from Virgin Money, where he was head of mortgage credit for just over a year. 

He also worked for Clydesdale and Yorkshire Bank (CYBG), which acquired Virgin Money, as head of retail secured lending and financial modelling where he managed credit at both brands. Prior to that, he had a 12-year stint at HSBC in various roles, with the most recent being head of retail risk analytics, Europe. 

Bridgman will be responsible for credit processes and policy at Generation Home as well as working with funding partners to support its growth. He will be reporting into Will Rice, chief executive, and work with the operations, data and underwriting teams.

In a discussion with Mortgage Solutions last month, Generation Home revealed it wanted to roll its proposition out to the whole broker market next year and become a top 20 lender. 

Generation Home offers mortgages which are similar to joint borrower sole proprietor products as they allow friends and family to contribute either to a borrower’s deposit in return for equity or mortgage payments. 

Rice said: “John is a significant addition to the senior team. With his deep understanding of credit processes and risk management expertise, he is the perfect person to build on what we have achieved to date. We are really excited for him to join our growing team.”  

Bridgman added: “I believe Generation Home has the potential to transform the housing market by delivering a mortgage experience that is truly built around the needs of the customer. With my skills and experience in credit, I am excited by the opportunity to play a formative role in this important element of the company’s growth.   

“Credit risk plays a critical role in the home buying process, protecting the interests of both the lender and the customer. Done right, it can play a big part in solving first-time buyer affordability challenges.” 

Platform and Virgin increase selected rates – roundup

Platform and Virgin increase selected rates – roundup

 

In its mainstream range, its two, three ad five-year fixed rates, both fee-free and fee options, have gone up between 0.05 per cent and 0.1 per cent. Its two-year fixed rate at 60 per cent LTV is now priced at 1.65 per cent.

On the BTL side, no-fee two-year fixed rates between 60 and 75 per cent LTV have increased by 0.15 per cent. This includes its two-year fixed rate at 60 per cent LTV which has a rate of 1.68 per cent.

Its no-fee five-year fixed rate between the same LTVs have also increased by around 0.05 per cent. An example is its five-year fixed rate at 60 per cent LTV, which has been priced at 1.82 per cent.

The lender has also reintroduced its two-year premier products in its BTL range. It has a minimum loan value of £350,001 and a maximum loan value of £500,000.

The lender made some reductions to its professional mortgage range, with two-year fixed rates falling by up to 0.2 per cent, and the five-year fixed rate between 85 and 90 per cent LTV has been cut by up to 0.19 per cent.

It has also cut its two-year fixed rate between 60 and 75 per cent LTV, both £999 fee and no-fee options, by up to 0.09 per cent. Its no-fee two-year fixed rate at 60 per cent LTV is now priced at 1.84 per cent, whilst its £99-fee option at the same LTV is now 1.75 per cent.

Virgin Money ups core and green range products

Virgin Money has increased rates in its core and green range between 65 and 75 per cent loan to value (LTV) by up to 0.12 per cent.

Its two-year fixed rate at 65 per cent LTV has increased by 0.02 per cent to 1.36 per cent. Its green equivalent with the same term and LTV has also grown by 0.02 per cent to 1.31 per cent. Both come with a £995 fee.

Its two-year fixed rate fee-save product has been upped by 0.06 per cent to 1.6 per cent.

On the five-year fixed rate side, its 65 per cent LTV product has grown by 0.12 per cent o 1.56 per cent and the green equivalent has jumped to 1.51 per cent, up from 1.39 per cent. Both have a £995 fee.

Its fee-free option at the same term and same LTV has increased by 0.11 per cent to 1.69 per cent.

The lender has also increased select 75 per cent LTV rates by 0.11 per cent and certain buy-to-let fixed rates have grown by 0.09 per cent.

In its product switch range, it has increased select mainstream and BTL products by up to 0.22 per cent.

TSB ups new build LTV limits; Virgin Money increases rates – round-up

TSB ups new build LTV limits; Virgin Money increases rates – round-up

 

The bank will now lend up to 85 per cent loan to value (LTV) on flats and maisonettes, up from 80 per cent. 

For new-build buy-to-let homes, second homes and holiday homes, TSB will lend up to 75 per cent LTV. This is a 10 percent increase.

These changes will apply from today.

Its lending limit on new-build bungalows and houses remains unchanged at 85 per cent LTV. 

 

Virgin Money increases rates 

Virgin Money has hiked rates on selected mortgages. 

The intermediary exclusive two-year fixed purchase product at 85 per cent LTV has gone up to 1.63 per cent from 1.49 per cent.  

The intermediary exclusive five-year fixed product at 75 per cent LTV has been increased from 1.45 per cent to 1.56 per cent. Both products have fees of £995. 

Within its core range, mortgages at 65 and 75 per cent LTV will be increased by up to 0.14 per cent. 

Virgin Money appoints Michelle Weston to South and London regional manager

Virgin Money appoints Michelle Weston to South and London regional manager

 

Weston takes over from Richard Walker, who was appointed to the role of national sales manager in September.

Prior to her current role she was regional sales manager at Natwest for just over a year, and before that she worked at Together for more than two years, most recently as a national sales manager.

The appointment marks a return to Virgin Money as she worked there between 2004 and 2018 as a BDM and regional account manager.

Walker said: “It is great to announce Michelle Weston as Virgin Money’s regional sales manager for London and the South. Michelle has a wealth of experience in the intermediary mortgage market and will play a key role in driving our mortgage ambition and leading her team of dual branded Field BDMs.”

Clydesdale Bank’s mortgage range available to DA brokers via mortgage clubs

Clydesdale Bank’s mortgage range available to DA brokers via mortgage clubs

 

Brokers will have access to underwriters for loans worth over £750,000 along with business development manager guidance on both Virgin Money and Clydesdale cases.

They will also have service benefits, and Virgin Money and Clydesdale recently relaunched its service promise which promises an offer to borrowers within 10 days of a fully packaged application being submitted.

Previously directly authorised brokers would have to go directly to Clydesdale Bank to access its products.

The parent company of Clydesdale, CYBG, acquired Virgin Money in 2018 for £1.7bn, and Virgin Money has emerged as the leading intermediary mortgage lending brand.

As part of its results earlier this year Virgin Money confirmed that there would be a rebrand, with Clydesdale and Yorkshire coming under the Virgin Money umbrella. The integration of the brand is expected to be completed next year.

Richard Walker (pictured), national sales manager Virgin Money, said: “This is a great opportunity for us to work more closely with our mortgage club partners providing their brokers with access to Clydesdale’s full mortgage range. This aligns with the Virgin Money model and is all backed up by our recently relaunched service promise.”

Virgin Money expands mortgage criteria

Virgin Money expands mortgage criteria

 

The maximum LTV on new-build homes is 90 per cent and for flats this is 80 per cent. For shared ownership borrowing, the bank will maintain lending up to 95 per cent LTV of the share being purchased, including new builds. 

Virgin Money has also extended the maximum term at 95 per cent LTV to 35 years, standardising the mortgage length across all tiers. 

Regarding bonuses, the bank will now calculate affordability on the latest year’s bonus at a rate of 60 per cent. It no longer requires a bonus to have been received after 2 December 2020. 

It will only need to use a two-year average or the most recent year if it is lower where the variable pay exceeds basic income. 

Annual, six-monthly and quarterly bonuses for employed borrowers will be considered. 

Changes will apply to Virgin Money products only.

Top 10 most read mortgage broker stories this week – 22/10/2021

Top 10 most read mortgage broker stories this week – 22/10/2021

 

The Advertising Standards Authority ruling to ban Habito’s April ad for its long-term fixed rate mortgage product also caught your eye.

Mortgage Advice Bureau’s annual conference took place in Birmingham at the ICC this week, with chief executive Peter Brodnicki detailing the company’s focus on lead generation and Goodbody’s chief economist Dermot O’Leary discussing interest rate rises.

Halifax increases LTI to 5.5x income and boosts affordability for nurses

Big banks likely to fill ‘void’ left by Help to Buy

Virgin Money partners with Hometrack to identify back book risk from climate change

Older homeowners see property wealth grow by £800 a month post-stamp duty holiday

ASA bans Habito One advert over ‘misleadingly exaggerated’ April interest rate rise claims

Google fraud focus requires advice firm action – Stonebridge

Government earmarks £450m to upgrade UK’s boilers

BoE could hike bank rates three times in 12 months – O’Leary

Technology and lead generation must target customers earlier in mortgage journey – Brodnicki

Cambridge brings back top slicing for buy-to-let mortgages

 

Virgin Money partners with Hometrack to identify back book risk from climate change

Virgin Money partners with Hometrack to identify back book risk from climate change

Provided in partnership with Ambiental and Terrafirma, as well as assessing the risk of climate change in the near term, Hometrack’s Risk Insights will assess how risk is forecast to develop across Virgin Money’s portfolio over time. 

Mark Thundercliffe, chief risk officer at Virgin Money, said: “The climate change risk analysis along with other valuable insight from Hometrack that we will now receive will mean Virgin Money can better understand the risks and opportunities in the current market while also planning accordingly for the future.”

George Robbins, VP commercial at Hometrack, said: “Changing regulation around climate change is one of the biggest challenges facing lenders in today’s market. Indeed, it’s an issue that is set to face the industry for the long term – it isn’t going to dissipate any time soon.

We welcome Virgin Money’s appetite to address this challenge early on and will support them as they gain control of its risk exposure based on our market leading data and analysis.”

The Bank of England has asked banks and building societies to assess the climate change risk to their mortgage book against a number of defined timeline and severity scenarios and to feed back on the findings of the risk assessment. Hometrack’s Climate Change Risk product ‘provides the relevant data and insight to do so.’

Robbins added: “It’s all about accurately identifying where, when, how often and how severe climate change related risks are going to develop, as well as devising the appropriate strategies to continue lending whist understanding and mitigating risks for both the lender and the consumer.”