Virgin launches new Rate Reducer products from 2.40%

Virgin Money has announced the launch of new Own New Rate Reducer products.

The products launched last month and offer reduced mortgage rates for new build customers by investing homebuilder incentive budgets into the mortgage upfront, typically up to 5% of the property purchase price.

New products with a £495 fee and 5% incentive include an 85% LTV two-year fixed rate at 2.40%, a 90% LTV two-year fix at 2.76%, and an 85% LTV five-year fix at 3.62%.

Virgin has also launched Rate Reducer products with a £995 fee and 3% incentive. Two-year fixed rates start from 2.52% at 60% LTV, 3.09% at 75% LTV, 3.41% at 85% LTV, and 3.71% at 90% LTV. Five-year fixed rates start from 3.54% at 60% LTV, 3.83% at 75% LTV, 4.02% at 85% LTV and 4.16% at 90% LTV.

All Rate Reducer products come with £250 cashback.

Virgin has also launched new exclusive buy-to-let purchase and remortgage Fix and Switch products, which offer a five-year fixed rate with two year early repayment charges. At 60% LTV, rates start at 4.89% with a £1,495 fee or 5.39% fee-free. At 75% LTV, rates are available at 5.04% with a fee or 5.49% fee-free.

As part of the changes, Virgin has increased selected rates across its range by up to 0.10%.

90% LTV purchase Fix and Switch products with a £1,495 fee have increased by 6bps to 5.14%, while 90% and 95% LTV Fix and Switch fee-saver products have increased by 5bps and now start from 5.42%.

70% LTV five-year fixed rate remortgage products have risen by up to 8bps, now starting from 4.54%, while 95% LTV purchase fee-free products have increased by up to 10bps and now start from 5.19%.

Craig Calder, head of secured lending at Virgin Money, said: “As part of our innovative Rate Reducer range it is great news that we are launching a new 3% incentive option as well as broadening the LTVs options. We are also expanding Fix and Switch to buy-to-let customers. As an creative lender we’re always looking at new and inventive ways in which we can assist borrowers and the latest evolution of the Rate Reducer and Fix and Switch offers just that."