Meanwhile, a mutual unveils new expat deals
Virgin Money has increased several five-year fixed mortgage rates across its product range, while Suffolk Building Society has launched new three-year fixed rate mortgages for expat borrowers.
For new purchases, Virgin Money’s five-year fixed deals at 65%, 75%, and 85% loan-to-value (LTV) have gone up by as much as 10 basis points (bps). Shared ownership rates at 85% LTV have risen by 4bps.
The lender has also increased the rate on its 75% LTV tier for loans above £1 million by 14bps, now at 4.58%; while own new five-year fixed rates have increased by up to 10bps. The retrofit boost option with a £995 fee has gone up by 0.05%.
Remortgage rates at 65% and 75% LTV have climbed by as much as 8bps. The rate for 75% LTV on loans exceeding £1 million has been raised by 9bps, now reaching 4.50%. Product transfer rates at 65% and 75% LTV tiers have also been adjusted upwards, increasing by up to 10bps.
These rate changes come shortly after the lender reduced pricing across a number of its ranges, including purchase, remortgage, buy-to-let and product transfer offerings last week.
Meanwhile, Suffolk Building Society has introduced two new fixed rate mortgages tailored for expat borrowers — one for residential use and the other for buy-to-let. Both are fixed for three years at 5.49% and are available for purchase and remortgage applications.
The residential expat mortgage is available up to 80% LTV, with a maximum loan size of £2 million. The BTL version has the same LTV cap and allows borrowing up to £1 million.
“We know that many customers are looking for financial stability and these products do just that, without tying borrowers in for longer than they may feel comfortable,” said Charlotte Grimshaw, head of intermediaries at Suffolk Building Society. “Expectations are that rates will begin to fall over the next couple of years so borrowers may feel that a five-year fix is too long, and a two-year deal isn’t quite long enough. We believe our three-year expat deals are in the Goldilocks zone, being ‘just right’ for this type of borrower.”
The mutual said it would consider multiple income currencies on one application and is open to a wide range of countries of residence — excluding those under UN sanctions. Most currencies are accepted for expat BTL applicants, and 16 currencies are permitted for expat residential and regulated BTL products.
It also confirmed it would lend to joint applicants where one is a British national and the other a foreign citizen, provided the British applicant meets criteria and affordability checks. No upper age limit applies, and joint borrower sole proprietor (JBSP) arrangements are available on expat mortgage offerings.
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