nigel woollsey

Nigel Woollsey

Online Writer
Published: 10/01/2020

Virgin Money has launched a range of fixed rate residential and buy-to-let mortgage deals that are available at the same interest rate for a two or three-year initial term.

The new residential mortgages

The new ‘three for two’ residential mortgages are available up to 90% loan-to-value (LTV) at an initial rate of 2.13% up to 1 May 2022 or 2023. They come with no product fees as well as free valuation, and free legal fees too for those looking to remortgage. There’s also £300 cashback for house purchases. Both mortgages revert to a rate of 4.99% variable after the initial term and the APRC is 4.2% for the three-year deal and 4.4% for the two-year deal.

The three-year version sits fifth in our 90% LTV three-year fixed mortgage chart, while the two-year version is outside of the top ten. Those looking for the best rates at 90% LTV will find Virgin Money at the top of the three-year fixed charts at 1.99% until 1 May 2023. This comes with a fee of £995, so borrowers should check the total they will pay over the three years to see if this makes the mortgage more expensive than a higher rate alternative with a low or no product fee. This mortgage offers free valuation and free legal fees for those remortgaging, £300 cashback for house purchases, rising to £500 for first-time buyers. This mortgage reverts to 4.99% variable after the initial term and has an APRC of 4.2%.

The new buy-to-let mortgages

The new buy-to-let deals under the ‘three for two’ banner are fixed at 1.56% for a maximum 75% LTV over a two or three-year initial term (ending 1 May 2022 or 2023.) There is an arrangement fee of £1,995 and benefits include £500 cashback for house purchases or £300 cashback for remortgages with the latter also enjoying free legal fees and valuations. The rate reverts to 5.19% variable after the initial term. This places it in second for the best interest rate for a buy-to-let mortgage at 75% LTV over a two or three-year fixed term.

Andrew Asaam, head of mortgages at Virgin Money, said: “We’re delighted to launch these special offers and hope they will help more customers.

“By launching the new ‘three for two’ rates, we’re offering customers an extra year’s peace of mind for no additional cost.”

New intermediary deal and mortgage rate cuts

Virgin Money has also introduced a new five-year fixed rate residential mortgage deal exclusively for intermediaries. With a maximum LTV of 65%, this new deal carries a rate of 1.49% fixed until 01 May 2025 before reverting to a rate of 4.99% variable, placing it among some of the best deals currently available. The product fees of £1,495 are offset by a benefits package that includes free valuation and legal fees for those remortgaging, as well as £300 cashback for house purchases.

This lender has also cut the rates on several its existing products and deals, including both residential and buy-to-let offers. This includes reducing its two-year fixed residential mortgage rate at 85% LTV from 2.34% to 2.13% and its equivalent five-year fix decreasing from 2.40% to 2.34%.

Its buy-to-let two-year fixed mortgage for a maximum LTV of 80% has seen its rate drop from 3.30% to 3.25%. This deal comes with a product fee of £995.

The lender’s three-year fixed rate buy-to-let mortgage for a maximum LTV of 60% has been cut from 1.74% to 1.56%. This has a product fee of £1,995.

Virgin Money’s shared ownership mortgage rate for a two-year fixed up to 95% LTV has also been reduced from 3.54% to 3.27%, while selected Help To Buy mortgages at 55% LTV and 75% LTV have had rates reduced by up to 0.40%.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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