It announces a 0.50% increase following a similar base rate rise by the BoE last month
Virgin Money has announced changes to its mortgage variable revert rates, which will be raised by 50 basis points, similar to the increase in the Bank of England (BoE) base rate last month.
The lender’s residential standard variable rate (SVR) will increase from 8.74% to 9.24%, while buy-to-let variable rate will increase from 8.94% to 9.44%.
Loyalty rate, for qualifying residential customers who have held a mortgage on a property for seven years or more, will increase from 8.49% to 8.99%.
The revised rates on the lender’s mortgage products will take effect from September 1 for existing customers, and from August 3 for new customers.
Virgin Money also announced that rates on Clydesdale and Yorkshire Bank’s residential SVR and residential offset variable rate will likewise be raised from 8.74% to 9.24% and 8.95% to 9.45% respectively.
The lenders’ buy-to-let revert rate, offset variable investment housing loan rate, will also increase from 9.24% to 9.74%.
The two banks’ new rates – also changed as a result of the BoE rate increase last month – will take effect from August 3 for new customers, and from the next payment date after August 3 for existing customers.
Virgin Money said most of its overall mortgage book was on a fixed rate product, and so was unaffected by these rate changes. Including base rate tracker products, the lender added that around 95% of its mortgage book would not be impacted by the changes in mortgage variable revert rates.
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