Virgin Money Fix And Switch Product
Virgin Money has today announced the release of its latest mortgage offering, the Fix and Switch product, extending its range of mortgage solutions to not only residential purchasers, but also seasoned buy-to-let landlords. The new product, which has most recently been launched in the portfolio landlord sector, aims to provide customers with enhanced mortgage flexibility and security in managing their mortgage terms. Let’s take a look at what exactly the Virgin Money Fix and Switch Product is.
Virgin Money Fix And Switch Portfolio Landlord Mortgage Product
In an email sent out to our brokers at Oportfolio Mortgages today, Virgin Money gave a breakdown of their newly released portfolio landlord fix and switch product. One of the standout features of the Fix and Switch product is its unique structure. Offering a five-year fixed-rate mortgage with early repayment charges (ERCs) applicable only for the first two years, it provides customers with the peace of mind of a longer-term fixed rate while retaining the option to reassess their circumstances with their mortgage advisor after two years without penalty.
In the email from Virgin Money, the lender goes on to explain that with the new products, customers have the benefit of a five-year product with ERCs for the initial two years. This means that customers seeking a two-year fixed-rate mortgage can enjoy the added security of knowing their rate for an additional three years. It also caters to those who prefer the certainty of a five-year deal but desire the flexibility to review their situation sooner if needed.
Attractive Products For Buy-To-Let Landlords
The Fix and Switch product from Virgin Money also offers increased affordability, benefiting from a lower stress test on residential mortgages and reduced interest coverage ratio (ICR) requirements for buy-to-let applications. This makes it an attractive option for both basic and higher rate taxpayers, with ICR coverage set at 125% or 145% respectively, for both buy-to-let (BTL) and portfolio landlord cases. Key features of the Fix and Switch product include a 2-year ERC of 1.5%, providing customers with certainty over their interest rates and monthly payments for five years. In the event that interest rates decrease after two years, customers have the freedom to switch to another deal without incurring ERCs.
Where Could This Benefit You?
For those considering the Fix and Switch product, Virgin Money highlighted to our brokers several scenarios where it may be particularly beneficial. These include customers who were considering a five-year fixed-rate mortgage but desire the flexibility to switch to a cheaper deal if interest rates fall, or those who prefer the certainty of a longer fixed-rate period to protect against potential interest rate rises. However, Virgin Money also acknowledges that Fix and Switch may not be suitable for everyone. Customers who believe that interest rates will remain stable or increase over the next five years, or those who do not intend to make overpayments after the initial two years, may find alternative mortgage products more suitable. Your mortgage broker will be there to help you to decide which product and lender makes the most sense for your circumstances.
Speak To A Whole Of Market Mortgage Broker
At Oportfolio Mortgages, we are a whole of market mortgage broker. That means that we can access every lender and mortgage product on the UK market. With access to thousands of mortgages, we are ready to assist our customers in finding the best mortgage solution tailored to their individual circumstances. If you or anyone you know is looking for a new mortgage, we are happy to help. Call our team today to arrange a fee free initial mortgage consultation.
