Virgin Money has announced significant rate cuts across its residential purchase mortgages.
The provider has also made a series of other changes to remortgage and buy-to-let options including reducing selected Shared Ownership Rates by up to 0.24 percent, with rates starting from 4.29 percent.
Virgin Money also announced that selected 80 percent LTV Exclusive remortgage rates will be reduced by up to 0.09 percent, with rates starting from 4.52 percent.
For mortgages with a £995 fee and £300 cashback, the 85 percent LTV two-year fixed rate has dropped by 0.20 percent to 4.74 percent, and the 90 percent LTV two-year fixed rate will decrease by 0.08 percent to 5.14 percent.
Five-year fixed rates for the same LTV bands have also been reduced.
Gabriel McKeown, Head of Macroeconomics at Sad Rabbit Investments commented on the cuts: “By cutting rates on residential purchase mortgages, remortgage, and buy-to-let options, the decision reflects a broader trend of easing lending conditions amid a backdrop of falling UK inflation rates and BoE policy shifts.
“Yet, while optimism is in the air, caution remains, as the future trajectory of inflation remains uncertain, and any unexpected rise could quickly alter the landscape.
“So, although the latest set of rate cuts light a path through the uncertainty, the fog of economic instability is ever present.”
Jack Tutton, Director at SJ Mortgages told Newspage: “Virgin are making hay while the sun is still shining with these reductions.
“They have followed several lenders in recent weeks by targeting the purchase market with the majority of their changes, however it is positive that they are still making reductions across a number of other product types as well.”
Stephen Perkins, Managing Director at Yellow Brick Mortgages commented: “Despite doom and gloom speeches from Labour ahead of the Autumn Budget, lenders continue to push out positive messages of rate reductions, showing they are banking on continued economic recovery.
“Let’s hope that the new administration doesn’t do something the markets don’t like.”
Riz Malik, Director at R3 Mortgages said: “While other lenders appear to be napping during the short week, Virgin has come out with welcome rate cuts at higher loan-to-values. With activity levels increasing since the base rate cut, this will be music to the ears for those with lower deposits who are eager to move.”
Darryl Dhoffer, Mortgage Broker at The Mortgage Expert commented: Virgin Money are the latest lender to jump onto the rate reduction train.
“However, it does feel like the rate cuts are running out of steam a little now, much like a drag racer nearing the end of a nitrous boost. Equally, it is the quiet end of August and next week is back to school for lenders and borrowers alike so we’ll see what happens then.”
