Its new five-year fix features the flexibility to switch after two years
Virgin Money has introduced a new mortgage product named Fix and Switch, combining the security of a fixed interest rate for five years with the flexibility to switch to another product without incurring an early repayment charge (ERC) after just two years.
Available exclusively through intermediaries registered with Virgin Money, Fix and Switch is geared towards residential purchase customers at 85% and 90% loan-to-value (LTV) options.
The product, launching today, features a couple of fee saver five-year fixed rate products with two-year early repayment charge. The 85% and 90% LTV deals are priced at 5.14% and 5.27%, respectively.
Both options also come with a cashback incentive of £500 for customers. Affordability assessments for Fix and Switch will be based on a five-year deal.
“In today’s higher interest rate environment, many mortgage borrowers are looking for long-term payment certainty, but don’t want to be tied in for the long-term,” stated Craig Calder, head of secured lending at Virgin Money. “Fix and Switch is the perfect solution for them, providing the certainty of a five-year fixed rate with the flexibility of a two-year ERC if rates begin to fall.”
David Hollingworth, associate director at L&C Mortgages, commented: “The mortgage market has provided so many ups and downs in the last couple of years that it’s understandable that borrowers will be struggling to decide on the best approach.
“Virgin Money’s innovative product offers an alternative and welcome solution to those that feel there’s room for rates to improve over the next couple of years but don’t want to be caught out if the outlook shifts again. There will no doubt be customers attracted to the ongoing certainty of rate if required but with the flexibility to review in two years.”
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