In an effort to adapt to the ever changing UK mortgage market, Virgin Money, the banking arm of Richard Branson’s Virgin Group, is set to launch a series of new mortgage products today (23rd of August 2023). These offerings cater to a range of borrowers, from first-time buyers to those seeking remortgage options. As part of this initiative, some existing products will be withdrawn from the market to make room. Here is a run through of what these new competitive products offer!
New Mortgage Products – Purchase Exclusives
Virgin Money’s new purchase exclusives are aimed at giving potential new homebuyers some more attractive and competitive options, to encourage them to purchase and not absolutely break the bank. Meaning higher LTVs are being supported and lower associated product fees. A sure benefit for new buyers where money might be tight.
One standout offering from Virgin Money is the new 90% Loan-to-Value (10% deposit) two-year fixed rate mortgage. This product comes with a relatively low £495 fee that can be added to the balance of the mortgage, rather than being paid upfront. This product comes with a competitive interest rate of 6.60% and offers borrowers a £1,000 cashback incentive. Additionally, for those looking for longer-term stability, there is an 85% LTV (15% deposit) five-year fixed rate mortgage with the same £495 fee, offering an attractive interest rate of 5.63%. For high value purchases exceeding £1 million, Virgin Money is introducing a 75% LTV (25% deposit) two-year fixed rate mortgage with a £1,995 fee at 6.41%. Alternatively, there is the 75% LTV five-year fixed rate mortgage product with the same £1,995 fee and an interest rate of 5.79%.
New Mortgage Products – Remortgage Exclusives
Venturing away from first-time buyers and new purchasers, Virgin Money has also a selection of new remortgage exclusives to assist homeowners in refinancing their properties. The 60% LTV two-year fixed rate mortgage fee-saver product, with a 6.36% interest rate is a particular highlight in our opinion and comes with free valuation. Likewise, the 60% LTV five-year fixed rate mortgage fee-saver product offers a highly competitive interest rate of 5.54% and includes free valuation. Finally, borrowers looking for a remortgage product with a free valuation and free legal support can opt for the two-year fixed rate mortgage with a £995 fee, now available at rates starting from 5.90%. For those looking for a longer-term commitment, the five-year fixed rate mortgage with the same £995 fee starts from 5.34%.
Products Being Withdrawn
Although Virgin Money has introduced these exciting new mortgage products, it is important to note that some existing offerings will be withdrawn from the market. As of 8pm today, the current 70% LTV exclusive remortgage tracker product will no longer be available to borrower. Additionally, all new business Buy-to-Let (BTL) fixed-rate fee-saver products will also be withdrawn from the market.
Virgin Money’s decision to launch these new mortgage products and withdraw others reflects its commitment to staying competitive in the mortgage market while aligning its offerings with the evolving needs of its customers and other lenders that are already dropping rates and offering new competitive products.
Speak To a Mortgage Professional
Potential new buyers and existing homeowners looking to take advantage of these new mortgage products should always consider their individual financial situations and long term goals carefully. A product may seem like it is the best for your circumstances, but you will need speak with a professional before you start making any decisions. You should always consult with a mortgage advisor before committing to any new mortgage, to determine the most suitable mortgage option for your needs. Call or email our team of brokers today to arrange an initial mortgage consultation. We are here to help.