Virgin Money Mortgage Rates Drop Below 4%
Virgin Money mortgage rates have tumbled to below 4% this week! A very welcome rate reduction came from the money lending arm of Richard Branson’s Virgin empire. This rate reduction is just one of many from lenders dropping their rates as economic stability returns to the market. Although most lenders still have rates above 4% and even above 5%, many lenders like Virgin are reducing their rates to a much more comfortable 3%. As a mortgage expert in London and the surrounding area, I have seem many of our clients coming off of 1% or 2% rates onto much higher products over the last few years. And despite rates still not being at that sweet 1% of the past, 3% products re-entering the market is definitely a good sign in my eyes. Let’s take a look at the latest announcement from Virgin Money.
Virgin Money Mortgage Rates Below 4%
Not always such a well-known mortgage lender, and certainly not historically the first name that pops into my head when thinking of lenders with low mortgage rates, Virgin has really taken the initiative to stop and say “Hey! We have faith in borrowers in 2024, and we want to lend!”. While many big banks are still cautiously dropping rates in tiny morsels, Virgin is among the few that clearly have more faith in the borrower of today as inflation drops and the economy is showing more signs of being stable and robust.
Here is a breakdown of the rate updates that were announced to our brokers at Oportfolio Mortgages recently:
Virgin Money Buy-To-Let Rates
Starting from today (20th of August 2024) exclusive buy-to-let rates from Virgin Money have reduced by up to 0.10%, with 60% LTV (40% deposit/60% mortgage) products starting from 3.90% at 60% and 75% LTV (25% deposit/75% mortgage) with a 3% fee. Also, a 60% LTV five-year fix with a £2,195 fee has been reduced to 4.31% and a two-year fix with a 1% fee has decreased to 4.69%. A 75% LTV two-year fix with a 1% fee has also reduced to 4.82%.
In Virgin’s core buy-to-let range, selected rates with a £995 fee will be reduced by up to 0.15%, with rates starting from 4.45%. Selected fee-savers are also down by up to 0.07%, starting from 4.70%. Selected buy-to-let product transfer rates are decreasing by up to 0.15%, with rates starting from 4.17%.
Virgin Money Residential Mortgage Rates
Virgin recently launched a sub-4% fixed rate residential product at 75% LTV. The five-year fixed rate at 3.99% is available up to 75% LTV with £300 cashback. That means that buyers with a 25% deposit can potentially mortgage their property for 5-years fixed with Virgin Money at 3.99%, subject to full credit score and mortgage application.
Let’s look at that in terms of actual figures:
- Purchase price: £400,000
- Deposit: £100,000
- Mortgage: £300,000
- Term: 35 years
- Generic market rate of 5% = £1,514
- Virgin Money 75% LTV rate at 3.99% = £1,327
- Money saved over 5 years = £11,220
Speak To A Mortgage Advisor About Low Mortgage Rates
Now is a great time for mortgages…despite what some people might want you to believe. We are exiting a period of high interest rates that have been around for a number of years now. When I started in the mortgage industry eight years ago, rates were as low as 1% and rates of 5% or 6% were reserved for people who had tricky situations or particularly bad adverse credit. But this is no longer the case unfortunately. At the moment, the average rate in the UK is around 5% so if a lender drops their rates to somewhere around 4% or even 3% as Virgin have done, this is definitely something to celebrate.
The only way to ensure that you always get the right mortgage product and rate for your circumstances is to enlist the help and guidance of a qualified mortgage advisor. At Oportfolio, we are experts in helping our clients get the best possible deals available to them. Call or email our team today to arrange a fee free initial mortgage consultation. We are here to help.
