Virgin Money is the latest lender to update its line of mortgage deals for homeowners and potential homebuyers.
The financial institution announced a new set of fixed-rate offerings as customers struggle amid a period of high-interest rates.
Brokers speaking to Newspage have praised the revised interest rates as being “fantastic” and representing the closest new mortgage rates have been to five percent as of late.
However, Virgin Money’s new exclusive offering stands out as it comes with a one percent fee.
Here is a breakdown of the latest remortgage exclusives, which one with the one percent fee, from Virgin Money
- 60 percent LTV Two Year Fixed Rate will be launched at 5.09 percent
- 70 percent LTV Two Year Fixed Rate will be launched at 5.15 percent.
Read more… Savings interest rates rise to 5.90 percent
Interest rates have been on the rise as central banks have hiked base rates in an attempt to rein in inflation.
In the UK, the Bank of England has increased the country’s base rate multiple times to 5.25 percent.
Justin Moy, the managing director at Chelmsford-based EHF Mortgages, highlighted that percentage fees from Virgin MOney could be the trigger to breach the five percent barrier on two-year fixes.
He explained: “More rate reductions can only be good news for borrowers, as market competition is the main reason why rates continue to edge downwards.
“There is a very interesting two-year fixed rate deal at 5.09 percent with a one percent fee, and this may be the quickest way we will see sub-five percent short-term deals in the coming months.
“The take-up numbers will be interesting. Either way, more product innovation from lenders can only be encouraged.”
Steven Hargreaves, a mortgage and protection adviser at The Mortgage Co, added: “The headline rates are very good, and yet more evidence that the fixed rate war is continuing.
“When advising on products you would always show a client the difference between a lower rate with high product fees and a higher rate with no product fees.
“That said to see these rates compared to what we were discussing with clients a couple of months ago is fantastic.”
