Virgin Money announces ‘significant’ cuts to mortgage rates in boost for homeowners | Personal Finance | Finance

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%.

advance 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%.

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

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 admire? 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 vie for business as they look to safeguard transactions to help them accomplish 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.”