In light of the Bank of England’s base rate increases of 0.25% each in March and May, Virgin Money has announced adjustments to its mortgage variable revert rates.
This decision comes after Virgin Money raised a number of its savings rates for both existing and new customers.
The adjustments to mortgage rates will impact the residential Standard Variable Rate (SVR), which will escalate from 8.24% to 8.74%.
The loyalty rate for qualifying residential customers, who have held a mortgage on a property for seven years or more, will see an increase from 7.99% to 8.49%. Moreover, the buy-to-let Variable Rate will rise from 8.44% to 8.94%.
These revised rates will apply to existing customers from 1st July 2023 and for new customers from 6th June 2023.
In the Clydesdale and Yorkshire Bank, similar changes will be observed. The residential SVR will see an increase from 8.24% to 8.74%, and the residential Offset Variable Rate will escalate from 8.45% to 8.95%. The buy-to-let revert rate, also known as the Offset Variable Investment Housing Loan Rate, will increase from 8.74% to 9.24%.
These revised rates will be in effect for existing customers from their next payment date after 6th June 2023, and for new customers from the same date.
Despite these changes, a significant majority of Virgin Money’s mortgage book remains on a fixed rate product and thus will not be affected by these rate changes. Including base rate tracker products, almost 95% of the mortgage book will remain unaffected by the changes in mortgage variable revert rates.
