Virgin Money brings out 90 per cent LTV products
The lender said it was bringing back the exclusive two-year fixed rate from tomorrow. It was initially launched in February and withdrawn in May.
The product has a rate of 1.99 per cent and comes with £1,000 cashback.
It has also introduced a three-year fixed rate with the same rate and a £995 fee.
According to its intermediary website, there are 17 products at the 90 per cent LTV tier, which includes purchase and remortgage, shared ownership, green shared ownership, product transfer and tracker products.
Lenders pulled back from higher LTV lending during the pandemic as it was perceived as a greater risk.
Since then, lenders have re-entered the space, with 90 per cent LTV products rising from 62 in September to 579 this month.
Virgin Money came back into the 90 per cent LTV space in December with a five-year fixed rate and continued to add options to its range throughout the year.
Earlier this year the lender announced that it had broadened the eligibility of its 90 per cent LTV mortgages to movers and remortgagors.
Virgin Money launches BTL and greener shared ownership products and cuts rates
The greener shared ownership mortgage is a two-year fixed rate with an interest rate of 2.24 per cent and comes with a £995 fee.
The exclusive buy-to-let products include a two-year fixed rate at 65 per cent LTV at 1.46 per cent, and a five-year fixed rate at 1.67 per cent. Both come with an £895 fee.
The lender has cut rates on select residential products between 85 and 95 per cent LTV by as much as 0.27 percentage points.
Its two-year fixed rate fee-saver at 85 per cent LTV will now have a rate of 1.89 per cent, down from 2.16 per cent, whilst its equivalent five-year fixed rate has fallen by 0.14 percentage points to 2.29 per cent.
MIts five-year fixed rate at 90 per cent LTV has been reduced from 2.78 per cent to 2.62 per cent and comes with a £995 fee, while its two-year fixed rate fee-saver at 95 per cent LTV has fallen by 0.16 per cent to 3.12 per cent.
In Virgin’s core buy-to-let range select products have fallen by 0.3 percentage points, with its two-year fixed rate moving from 1.53 per cent to 1.35 per cent. It comes with a product fee of £1,995.
The lender also confirmed rates for select exclusive purchase deals with £1,000 cashback would be cut, with its two-year fixed rate at 95 per cent LTV standing at 1.63 per cent, down from 1.83 per cent, whilst its equivalent five-year fixed rate has decreased by 0.14 percentage points to 2.11 per cent. Both come with a £1,495 fee.
Virgin Money adds broker exclusive remortgage deals and applies multiple rate cuts
The new, exclusive two-year fixed remortgage products included a 1.04 per cent rate, at 65 per cent loan to value (LTV), with a fee of £1,495, free valuation and £500 cashback.
Additionally, the lender added an exclusive two-year fixed remortgage rate at 1.05 per cent, on 75 per cent LTV, with £1,495 fee and free valuation and legals.
Also in broker exclusive offers, rates were cut on the £1,000 cashback range for purchase. The highlight was a 19 basis points (bps) reduction, to 1.58 per cent, on the two-year fixed at 80 per cent LTV, with £995 fee.
Resi, Greener, Help to Buy, BTL
Rate cuts swept across the product ranges, fixed rate terms and LTV tiers.
At 95 per cent LTV, the two and three-year fee-saver fixed rates were cut by 10 bps to 3.28 per cent.
The five-year fixed fee-saver at 95 per cent LTV was lowered by 13 bps to 3.44 per cent.
Rates were cut on the Greener residential products, including a 63 bps reduction, to 1.15 per cent, on the two-year fixed at 75 per cent LTV with £995 fee.
The deepest cut on the Help to Buy roster was 93 bps to 1.88 per cent, on the two-year fixed fee-saver at 75 per cent LTV.
On the Help to Buy Greener two-year fixed, the rate was lowered by 76 bps to 1.35 per cent, with £995 fee, at 75 LTV.
In buy-to-let (BTL), rates were trimmed, with, for example, a cut of 8 bps to 1.64 per cent on the two-year fixed at 75 per cent LTV, with £995 fee. The same cut applied to the portfolio BTL two-year fixed at 75 per cent LTV, bringing it to 1.74 per cent, with £995 fee.
Rate cuts were applied to product transfers across the LTV tiers. These included, in core residential, 58 bps shaved off the three-year fixed at 90 per cent LTV, giving a rate of 2.39 per cent, with £995 fee. They included cuts at 95 per cent, such as the 13 bps reduction to the five-year fixed rate fee-saver, to 3.44 per cent.
Highlights of cuts on Help to Buy and BTL product transfers included a 43 bps reduction to 1.88 per cent on the Help to Buy two-year fixed fee-saver at 75 per cent LTV.
On BTL, the biggest cut was on the five-year fixed at 60 per cent LTV, with a £995 fee, which was lowered by nine bps to 1.65 per cent.
The new products and rate changes are available from today.
Virgin Money cuts residential and BTL rates by up to 0.88 per cent
Rate reductions have been made to its remortgage, purchase, residential, greener mortgage and buy-to-let (BTL) ranges.
On the BTL side six product rates have been cut; its three-year fixed rate at 75 per cent LTV will be cut by 0.88 per cent to 1.85 per cent.
Other cuts in its BTL range include a 0.19 per cent reduction to its three-year fixed rate at 65 per cent LTV to 1.52 per cent, and a 0.16 per cent rate decrease to its two and three-year fixed rate at 75 per cent LTV to 1.53 per cent apiece.
On the remortgage side, its five-year fixed rate at 75 per cent loan to value (LTV) has been reduced from 1.29 per cent to 1.22 per cent.
Both its two-year and five-year fixed rate remortgage products at 80 per cent LTV have been cut by 0.06 per cent and 0.11 per cent respectively. The rate for the two-year fixed rate now stands at 1.58 per cent and the five-year fixed rate is now 1.84 per cent.
All the remortgage products come with a £1,495 fee.
In its purchase range, its five-year fixed rate at 80 per cent LTV has gone from 1.99 per cent to 1.89 per cent, whilst it two and five-year fixed rate at 85 per cent LTV have decreased by 0.05 per cent to 1.88 per cent and 2.28 per cent respectively.
Significant cuts have also been made to its two and three-year fixed rate at 90 per cent LTV, which have both decreased from 2.99 per cent to 2.59 per cent.
In the lender’s greener mortgage range around four products have been cut, with its two-year fixed rate at 65 per cent LTV falling from from 1.69 per cent to 0.94 per cent.
DIFF podcast: The mortgage industry needs to recognise transferable skills when hiring
Speaking on the Diversity and Inclusivity Finance Forum (DIFF) podcast, the bank’s head of customer acquisition said the sector needed to “stop being lazy” with recruitment so talent pools could be more open and diverse.
Green said: “We need to stop thinking ‘oh I need a business development manager (BDM) in my team, what other BDMs are out there?’ because that doesn’t get you a diverse mix in an industry that’s already struggling.”
She said it was down to the recruiting manager to push for diversity and make sure the right people were being considered for a role.
“That individual manager has to have the responsibility of pushing back and saying, ‘no I’m not just taking five CVs, I want you to go out and find me a much better representation of the UK’,” she added.
Green said people should not always be employed on the basis of carrying out a similar role as the job applied for but based on skill.
She said: “What we need to do as an industry, particularly in the mortgage industry, is go out and really recognise what the transferable skills are. Recognise what we want from an individual.”
Aimée Gaudin, marketing and diversity and inclusion consultant and co-founder of Become, said a more diverse talent pool increased the overall chances of a minority getting recruited.
She added: “If there’s only one ethnic minority in a talent pool, they have virtually zero chances of getting hired. Whereas if there’s two ethnic minorities in a talent pool, their chances are 170 times greater, which is insane.”
Intersectionality and understanding
Intersectionality is the acknowledgement that some people have more than one characteristic that puts them in a minority class and could result in them facing multiple kinds of discrimination.
Gaudin said some people did not agree with the theory of intersectionality as they feel it simplifies them and their experiences.
“That can be quite damaging actually, to be defined by a particular group experience, which is usually about your identity or some kind of oppression that you don’t identify with for whatever reason,” she said.
She mentioned her sister, who is also mixed heritage Jamaican and Caucasian, but “white passing”, saying she may not associate with some discriminations faced by people of the same demographic.
However, Gaudin said the theory could work if multiple layers were addressed and included class, wealth, age and education as well.
“I do agree with intersectionality as long as we make that judgement and understand that no two people’s experiences will be the same,” she added.
Green said as allies, it was necessary to speak with people about their experiences and to not make assumptions.
However, she said it was important to ask questions without fearing saying the wrong thing, but also without being offensive.
Gaudin said this could be helped by setting up a diversity and inclusion committee at work, making sure everyone has the space to share their thoughts if they volunteer to do so.
She also said to take note of how minority groups within companies who were part of coalitions such as African and Caribbean associations or LGBTQ+ groups interacted not only among themselves, but with each other.
Gaudin added: “If those conversations are happening behind closed doors, then it’s just people with similar experiences and outlooks who are then just feeding their own perspectives, so they have the same blind spots.
“That’s not the thing that’s going to change mindset and help to instigate change. In the workplace, you need people who want to join that conversation, who want to be allies and understand new perspectives.”
AMI hits initial target on inclusivity survey but extends call for all brokers to contribute
According to AMI, less than five per cent of those eligible have completed the questionnaire and the association urged lenders, brokers and support firms to share their views.
With support from Aldermore and Virgin Money, the 15-minute survey aims to collate views on diversity, equity and inclusion across the industry at every level of seniority. All responses are anonymous.
Please fill in the survey here, and share the link to colleagues using the social media buttons provided.
AMI’s chief executive Robert Sinclair (pictured) said: “We have had a great response to the survey. But we need more data and views. If you have completed it, then a big thank you. If not, then I must ask why not? We are looking to understand how inclusive our industry is and whether we can do more to help firms achieve diversity of thought and an inclusive culture?
“AMI is doing this work because we want to know all views. If you think this is not about you, then you are wrong – it is. It is about how our industry develops in its widest sense and to ensure that everyone is able to share their views, experiences and opinions. Help us to shape the future.”
Vida appoints Truswell head of intermediary distribution
Truswell (pictured) has more than 30 years’ experience in the mortgage intermediary market, with previous roles at Virgin Money, Capital Home Loans and Together. John joins from Newcastle Building Society, where he was head of intermediary mortgages.
Richard Tugwell, director of mortgage distribution at Vida, said: “We are very pleased to welcome John to Vida at this exciting time in development of the business. He is a familiar face to many in the intermediary market and has a wealth of mortgage experience. Having worked with him previously I am confident he will help us further enhance our mortgage propositions and the service we provide to mortgage brokers in the intermediary market.”
Truswell said: “This is a very exciting time to be joining Vida as it continues to strengthen the support it provides brokers. I’m very much looking forward to getting started, ensuring brokers and their clients remain at the heart of all future developments.”
Ex-CEO David Tweedy and managing director mortgages Guy Batchelor left the lender in January 2020.
Louisa Sedgwick succeeded Guy as managing director but left in March 2021 and is on gardening leave, awaiting her start as managing director of Tandem Bank on 1 October.
Richard Tugwell joined the bank to replace Sedgwick in March last year.
Virgin Money accepts e-signatures on mortgage declarations
Borrowers can sign electronically in a number of ways.
As well as the option to type their name into the declaration and electronically paste their signature, borrowers using a touch screen can use their finger, e-pen or stylus.
Alternatively, borrowers can access a contract through a web-based e-signature platform and click to have their name automatically inserted in the appropriate place.
A wet signature will still be required on certain forms, such as gifted deposit and Mortgage Guarantee Scheme forms.
Brokers can submit documents electronically.
Virgin Money will accept either photos or scans of documents.
Virgin Money and Clydesdale Bank introduce contractor solution following IR35 changes
The tax changes were made to ensure contactors paid the correct tax if the work they did for a firm was equal to employment.
Virgin Money and Clydesdale will lend to contractors who fall inside of IR35 rules, where they are paid via an umbrella company or payroll service company.
If a contractor is paid by an umbrella company they must show the last two months of payslips, which takes into account gross pay after the deduction of statutory employer costs and payroll service costs.
The lenders said “complex contractor situations” would be assessed manually by an underwriter and considered on a “case by case basis”.
Virgin Money’s head of customer acquisition, Sarah Green, said: “As a bank we understand that contractors need mortgage products that are flexible enough to accommodate their professional and financial situations and that is why, following the IR35 changes we have made these positive amendments to our lending policy.”
Virgin Money and Clydesdale Bank are the latest lenders to make changes to its contractor offering, with Halifax adjusting its affordability and income criteria for contractors in June.
Virgin Money cuts rates and launches purchase and remortgage products
The lender has brought out three remortgage exclusives, including two five-year fixed rates and one two-year fixed rate.
The rate for its five-year fixed rate remortgage product at 75 per cent loan to value (LTV) starts at 1.29 per cent, whilst the five-year fixed rate remortgage product at 80 per cent LTV has a rate of 1.95 per cent.
The two-year fixed rate remortgage product at 80 per cent LTV has a rate of 1.64 per cent.
The purchase exclusive, which comes with £1,000 cashback, is available on both a two-year and five-year fixed rate at 85 per cent LTV.
The two-year fixed has a rate of 1.93 per cent, whilst the five-year fixed rate starts from 2.33 per cent.
The lender has cut the rates on its two and five-year fixed rate purchase product at 80 per cent LTV by 0.16 per cent, with its two-year fixed rate pegged at 1.77 per cent and its five-year fixed rate now standing at 1.99 per cent.
Virgin Money has also made a range of cuts to its core residential, shared ownership and BTL range.
In its core residential range its five-year fixed rate at 90 per cent LTV with no fee has been cut by 0.58 per cent to 3.04 per cent. Its equivalent no fee product has gone down by 0.47 per cent to 2.94 per cent.
Its two-year fixed rate at 95 per cent LTV with no fee has been reduced by 0.2 per cent to 3.38 per cent, whilst its two-year fixed rate at 90 per cent LTV has fallen by 0.4 per cent to 2.39 per cent. Both products are subject to a £995 fee.
On the shared ownership side, its five-year fixed rate at 85 per cent LTV has fallen from 3.6 per cent to 2.99 per cent. Its five-year fixed rate at 90 per cent LTV has gone from 3.71 per cent to 3.39 per cent.
The lender has reduced the rates for its BTL products by up to 0.3 per cent, with its two-year fixed rate at 80 per cent LTV decreasing from 3.29 per cent to 2.99 per cent.
Its five-year fixed rate BTL product at 80 per cent LTV has been cut by 0.17 per cent to 3.18 per cent, whilst its five-year fixed rate at 75 per cent LTV has fallen by 0.1 per cent to 1.99 per cent.
The above trio of BTL products are subject to a £995 fee.