Virgin cuts mortgage rates and revamps offering

Virgin has updated its mortgage offerings with several new rates. For remortgage exclusives with a 1% fee, the lender is offering a 60% LTV 2-year fixed rate at 5.09% and a 70% LTV 2-year fixed rate at 5.15%. These exclusives also come with free valuation and legal services.

Additionally, remortgage exclusives featuring free valuation and £250 cashback include a 60% LTV 2-year fixed rate priced at 5.26% with a £995 fee, and a 70% LTV 2-year fixed rate at 5.32% with the same fee. The 5-year fixed rate options in this category are 4.85% for 60% LTV and 4.90% for 70% LTV, both carrying a £995 fee.

On the purchase exclusive side, Virgin has rolled out offers with free valuations such as an 85% LTV 2-year fixed rate at 5.46% with a £1,295 fee and a 5-year fixed rate at 4.96% for the same LTV and fee. The fee-saver options feature a 65% LTV 2-year fixed rate at 5.47%, a 75% LTV at 5.52%, an 85% LTV 2-year fixed rate at 5.88%, and a 5-year fixed rate at 5.12%.

In addition Virgin is reducing its 90% LTV purchase exclusives by up to 0.10%, now starting at 5.11%. Their BTL Portfolio Remortgage & Purchase Exclusives with a 3% fee will see a reduction of 0.05%, with rates commencing from 4.97%.

Also, selected product transfer fixed rates have been lowered by up to 0.15%, beginning at 4.89%, and certain core purchase and remortgage fixed rates have been reduced by up to 0.15%, starting from 4.92%. Lastly, some purchase and remortgage freedom to fix rates will see an increment of 0.05%, with rates initiating from 5.60%.

Richard Walker, head of intermediary sales at Virgin Money said: “We have reintroduced our Intermediary exclusive products and made a number of reductions across our residential and buy-to-let range, supporting all segments of the market.

“These exclusives consist of both purchase and remortgage products including a new range of remortgage 2-year fixed rates with a 1% fee offering a lower monthly payment.”

Nick Mendes, mortgage technical manager at John Charcol, commented on the changes: “Following TSB recent repricing, Virgin have moved quickly to take over the top spot for remortgage 2-year fixed deals from tomorrow.

“It’s fantastic to see a lender swiftly adapt where another has exited. However, with any exclusive deal, mortgage holders need to act fast to secure.”


Justin Moy, managing director at EHF Mortgages:

“More rate reductions can only be good news for borrowers, as market competition is the main reason why rates continue to edge downwards. There is a very interesting 2-year fixed rate deal at 5.09% with a 1% fee, and this may be the quickest way we will see sub-5% short-term deals in the coming months. The take-up numbers will be interesting to see. More product innovation from lenders can only be encouraged.”

Stephen Perkins, managing director at Yellow Brick Mortgages:

“Whilst it is great to see 2-year fixed rates edge ever closer to the sub-5% zone, the 1% product fee on a 2-year deal will likely not be cost-effective for most borrowers. However, low rates will no doubt attract some borrowers as Virgin is fighting hard for some market share to hit its year-end lending figures.”

Steven Hargreaves, mortgage and protection adviser at The Mortgage Co:

“The headline rates are very good, and yet more evidence that the fixed rate war is continuing. When advising on products you would always show a client the difference between a lower rate with high product fees and a higher rate with no product fees. That said to see these rates compared to what we were discussing with clients a couple of months ago is fantastic.”

Ranald Mitchell, director at Charwin Private Clients:

“It’s good to see more rate reductions but it is the introduction of percentage fees rather than flat product fees that grabs the attention. Whether these will benefit any particular case is entirely dependent on that set of circumstances, but there will be benefits to some. It seems like the offsetting of mortgage interest to fees is becoming more of a thing in the mortgage space.”

Elliott Culley, director at Switch Mortgage Finance:

“Virgin is trying something different here whilst taking a leaf out of Skipton’s book of charging a percentage. Once again, this is a lender trying to find ways of attracting more business while rates are a little stagnant. From a broker’s perspective, it’s good to have options for customers and everyone’s situation is slightly different.”

Katy Eatenton, mortgage & protection specialist at Lifetime Wealth Management:

“Rate reductions are always a move in the right direction, even with a 1% fee. The fee won’t work for everyone, but this is where having qualified advice prevails, as borrowers can assess all the options that are available to them and make an informed decision based on their circumstances and requirements.”