Virgin Money announces ‘significant’ cuts to mortgage rates

12/13/2023

Virgin Money has announced another wave of “significant” cuts to mortgage rates in a boon for homeowners.

The lender has slashed interest rates across its range of remortgage, buy-to-let and residential mortgage products.

This comes as other banks and building societies are cutting mortgage rates in a bid to better support customers.

Households have been forced to contend with soaring rates in recent years as central banks have struggled to control inflation.

However, as the CPI rate has eased, interest rates are coming down too which is beneficial for mortgage holders.

Read more: Falling swap rates could mean mortgage rates are ‘set to drop’ further

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Here is a breakdown of the latest changes to mortgage rates by Virgin Money as of December 14, 2023:

Remortgage Exclusives with 1% Fee

60% LTV 2 Year Fixed Rate with 1% fee will be reduced by 0.20%, at 4.59%.
70% LTV 2 Year Fixed Rate with 1% fee will be reduced by 0.20%, at 4.69%.

BTL Exclusives

2 & 5 year fixed rates with £2,195 fee will be reduced by 0.05%, starting from 4.59%.
5 year fixed rates with 1% fee will be reduced by up 0.32%, starting from 4.74%.
2 year fixed rates with 3% fee will be reduced by 0.15%, starting from 4.52%.
5 year fixed rates with 3% fee will be reduced by up to 0.22%, starting from 4.44%.

Further selected reductions

Purchase & Remortgage core fixed rates will be reduced by up to 0.36%, starting from 4.54%.
Residential & BTL Product Transfer fixed rates will be reduced by up to 0.30%, starting from 4.66%.

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Brokers reacted positively to the news of Virgin Money’s decision to cut interest rates even further.

Justin Moy, a managing director at EHF Mortgages, believes other lenders will follow suit following the financial institution’s decision.

He explained: “These are significant rate cuts from Virgin Money and will make the rest of the high street lenders wake up from their Christmas snooze.

“With rates firmly in the four percent range, what’s not to like? This may be due to improving Swap rates and the underwhelming GDP data, but Virgin have made a real statement of intent today, for the benefit of their borrowers and the wider market.”

Speaking to Newspage, Matthew Jackson, director of Mint FS, highlighted the thinking of many mortgage lenders.

Mr Jackson added: “It would seem that we are finishing the year with a flourish of reductions from lenders, which is nothing but positive news for buyers, remortgagers and brokers as we head into 2024.

“Despite the poor GDP figures published today, lenders continue to compete for business as they look to secure transactions to help them achieve their 2023 lending forecasts.

“In a year that has seen more negative trends than positive ones in the mortgage market, hopefully, this is a sign of an improving market as we enter 2024.”

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