The rate cut comes after HSBC UK's own price reduction
Hot on the heels of HSBC UK announcing the first sub 4% fixed mortgage rate since the mini budget, Virgin Money has countered with a rate as low as 3.95%.
The lender announced that it was making changes to its residential and buy-to-let range, with immediate effect, including relaunching 95% loan to value (LTV) products.
The company’s Exclusive Remortgage deals, with cashback, include 65-75% LTV, two- and five-year fixed rates, with a £995 fee, reduced by up to 0.25%, now available from 3.95%.
Its Exclusive Purchase range of deals, including a free valuation, offers 65-90% LTV, five-year fixed rates, with a £1,495 fee, reduced by up to 0.18%, now available from 3.99%. Its new 95% LTV Five-Year Fixed Rate fee-saver is launched at 5.09%.
Virgin Money confirmed that its product transfer fixed rates have also been reduced in line with its new business range.
Richard Walker (pictured), head of intermediary sales, at Virgin Money, said: “Many borrowers, including first time buyers, are looking for a longer term product which guarantees a fixed rate and a consistent payment for the term of the product. These new five- and 10-year fixed rates at 95% LTV offer exactly that, and mean more aspiring homeowners can get their foot on the housing ladder and get the keys to their first property.
“We’ve also refreshed our range of Intermediary Exclusives, including competitive five-year fixed rates starting from 3.95%, as we continue to support many types of customers with their mortgage needs.”
On Tuesday, HSBC UK announced that it was bringing down the cost of borrowing for both new and existing residential mortgage customers, with the first sub-4% rate since the mini budget.
It said customers would be able to lock-in a five-year fixed rate mortgage at under 4.00%, for the first time this year - 60% LTV with £999 fee priced at 3.99%, for remortgages.
Responding to Virgin Money’s announcement, David Conway, director of Clayhall Financial Services, said: “This should come as no surprise as banks’ confidence in the recovery has grown. Any downturn is now expected to be shallower and shorter than previously thought and thus far this is holding up.”
Meanwhile, Ashley Thomas, director of Magni Finance, commented: “Rates are coming down rapidly, and I wouldn’t be surprised to see them at 3.5% or lower in the coming weeks. It is a welcome change in light of the large increases we saw during the closing stages of 2022.”
