Virgin Money is setting a new standard in the mortgage market by launching a series of innovative mortgage products and announcing a reduction in rates across its entire portfolio. These substantial changes will be officially implemented today, March 20, 2025, and are designed to cater to a diverse range of borrowers.
Among the key products introduced are the new Shared Ownership Greener New Build offerings. Notably, the lender is offering an 85% loan-to-value (LTV) two-year fixed rate mortgage at 4.42% with a £995 fee. For those looking for a more accessible option, there is also a 95% LTV two-year fixed rate fee-saver product available, charging a slightly higher interest rate of 5.33%.
Virgin Money is also reaching out to buy-to-let borrowers, launching an attractive remortgage option that is particularly advantageous for investors. This exclusive offer includes a free valuation and £300 cashback on top of competitive rates. Specifically, the products comprise a 60% LTV two-year fixed rate mortgage at 3.49% with a 3% fee, while a 75% LTV five-year fixed rate mortgage is offered at 4.04%, also with a 3% fee.
In a further effort to remain competitive, Virgin Money is cutting rates on several existing mortgage products. Specifically, selected 80% LTV purchase fixed rates are being reduced by up to 0.13%, leading to rates starting as low as 4.31%. Meanwhile, the two-year fixed rates for buy-to-let mortgages at 60% LTV will see a decrease of 0.10%, adjusting the cost to 4.49%.
However, not all products will continue. Virgin Money has announced the withdrawal of several existing offerings, including its 75% LTV ten-year fixed rate product, which was initially set at 4.89% for both purchase and remortgage options. This withdrawal will take effect from 8 PM on March 19, just ahead of the official product launch.
These strategic moves by Virgin Money reflect a broader trend within the mortgage lending industry aiming to adapt to the current economic climate and consumer needs. The changes are expected to influence a significant number of potential borrowers and help them navigate an increasingly competitive housing market.
According to market analysts, the new rate changes and product offerings are part of Virgin Money's initiative to boost its market presence and provide borrowers with a range of choices that meet varying financial situations. This strategy aims to not only attract new customers but also retain existing ones who might be considering refinancing their current mortgages.
As UK mortgage rates continue to fluctuate, borrowers are increasingly seeking affordable options that align with their financial goals. The introduction of these innovative mortgage products comes at a crucial time when many individuals are venturing into home ownership or are looking to expand their property portfolios.
Industry experts are poised to closely monitor the outcomes of Virgin Money's latest offerings and whether they will set new benchmarks in the mortgage market. With rising interest rates and changing economic conditions, lenders are compelled to rethink how they address borrowers' needs.
In conclusion, Virgin Money's recent mortgage product launch and subsequent rate reductions signify a proactive approach in an ever-evolving housing finance sector. By promoting accessible and competitive rates, Virgin Money is not only responding to consumer demand but also positioning itself as a leader in meeting the diverse needs of today's borrowers.
