Virgin increases residential and buy-to-let rates by up to 0.20%

Virgin Money has announced a series of rate increases across its residential and buy-to-let mortgage ranges.

In its exclusive range, selected buy-to-let rates will increase by up to 10bps from 8pm today.

In Virgin's residential offering, Retrofit Boost five-year fixed rates and Own New two and five-year fixes are rising by up to 0.20%.

Selected £1m+ fixed rates will also be increased by up to 0.20%.

As part of the changes, exclusive 80% LTV purchase two and five-year fixed rates will be withdrawn.

In Virgin's core range, 65% and 75% LTV purchase rates are rising by 0.20%, while 85% LTV five-year fixes are up by 0.10%.

Selected shared ownership fixed rates are rising by up to 0.20%, remortgage five-year fixed rates by 0.20%, and product transfer five-year fixes at 65% LTV by 0.10%.

Virgin has also announced the launch of a new buy-to-let exclusive two-year fixed rate product, available at 5.40% up to 80% LTV with a 1% fee.

In addition, end dates will move to 1st April of the relevant year. 

Several industry experts have predicted that lenders will increase mortgage rates as swap rates continue to rise.

Rachel Springall, finance expert at Moneyfacts, said: "There were big expectations for fixed mortgage rates to fall, but this could take longer should the markets be unsettled and if swap rates start to rise. Lenders may be cautious in their rate setting but they need to make efforts to entice new business and act quickly if there is volatility on future rate expectations."

Frances Haque, chief economist at Santander UK, commented: “This month, we’re already seeing swap rates edge up as they respond to volatility in the bond market, caused by an uncertain economic outlook for 2025 both at home and abroad. As such, lenders may well – in the short-term - nudge up pricing to reflect the higher swaps."