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Virgin Money reduces rates for first time buyers

07/12/2012

This information is intended for use by journalists and is correct at the time of publication. Customers wanting to view our current mortgage range should visit our mortgages pages.

  • Virgin Money is committed to helping customers with smaller deposits
  • 90% LTV mortgages reduced by up to 0.90% and available from 4.99%
  • 85% LTV mortgages reduced by up to 0.70% and available from 4.09%

Virgin Money is reducing a number of interest rates in its residential mortgage range. The updated range will be available from 7 December 2012 and the main changes are focused on helping those borrowers who have a smaller deposit, including first time buyers.

For a borrower with a 10% deposit, a two year fixed rate is available at 4.99%, a reduction of 0.90%. Loans up to 85% LTV will be available from 4.09% (0.70% lower) and 80% LTV from 3.59% (0.60% lower) (all with a £995 product fee).

Reductions have also been made at lower LTVs. Two year fixed rates at 60% LTV will be available at 2.64%, (with a £995 product fee), with the equivalent at 70% LTV available from 2.75%, a reduction of 0.13%. A 75% LTV at the two year fixed rate will reduce by 0.30% to 2.99%.

Further reductions have also been made to the Fee Saver range of products with a two year fixed rate at 90% available at 5.39%, a reduction of 0.80%. The equivalent 85% LTV product is available at 4.59% and the 80% LTV product is available at 3.99%, a reduction of 0.49% and 0.59% respectively.

A number of updates to the buy to let range have also been made. A two year fixed rate up to 60% LTV will be available at 3.89%, or up to 70% LTV at 4.25%. Both products have a £1,995 product fee. For those products with a £995 product fee, a two year fixed rate up to 60% LTV will be available at 4.45%, and up to 70% LTV at 4.59%. £500 cashback remains available across all buy to let products.

Anthony Mooney, Savings and Mortgage director at Virgin Money said: “Virgin Money is committed to supporting borrowers with smaller deposits including first time buyers. The significant reductions we have made to the rates on our higher LTV mortgages will help make it easier for them to get their foot on the property ladder.”

ENDS


Media Contacts
Press Office
Tel: 0191 279 4676
email: press.office@virginmoney.com


PRODUCT DETAILS

Residential Everyday Fee Saver fixed rate mortgages

  

Purchase

Remortgage

Fixed term

Max LTV£995 Product FeeFee Saver Option£995 Product FeeFee Saver Option

2 years

60%2.64%3.05%2.64%3.05%
70%2.75%3.15%2.75%3.15%
75%2.99%3.59%2.99%3.59%
80%3.59%13.99%3.59%3.99%
85%4.09%14.59%4.09%4.59%
90%4.99%15.39%n/an/a

3 years

70%2.95%3.45%2.95%3.45%
75%3.48%3.88%3.48%3.88%
80%4.38%14.68%4.38%4.68%
85%5.09%15.18%5.09%5.18%
90%6.19%16.29%n/an/a

5 years

70%3.08%3.55%3.08%3.55%
75%3.65%3.99%3.65%3.99%
80%4.58%14.99%4.58%4.99%
85%5.19%15.28%5.19%5.28%
90%6.29%16.39%n/an/a

1 – includes cashback of £300

Residential Everyday tracker mortgages

  

Purchase

Remortgage

Tracker period

Max LTV£995 Product FeeFee Saver Option£995 Product FeeFee Saver Option

2 years

70%2.75%3.15%2.75%3.15%
75%2.99%3.59%2.99%3.59%
80%3.59%3.99%3.59%3.99%

3 years

70%2.95%3.45%2.95%3.45%
75%3.48%3.88%3.48%3.88%
80%4.09%4.49%4.09%4.49%

Buy to let mortgages – all including cashback of £750

Product

Max LTV£1,995 fee£995 fee2.5% fee2.0% feeFee Saver Option

2 year fixed

60%3.89%4.45%3.59%4.09%5.09%
70%4.25%4.59%3.85%4.29%5.65%

3 year fixed

60%4.25%4.75%3.89%4.49%5.59%
70%4.65%4.85%4.25%4.69%5.89%

5 year fixed

60%4.35%4.88%4.09%4.89%5.79%
70%4.75%4.99%4.39%5.09%5.99%

2 year tracker

60%n/a4.29%3.49%3.99%n/a
70%n/a4.59%3.79%4.29%n/a

Early Repayment Charges
Following the fixed rate or tracker period, the loan will revert to Virgin Money’s Standard Variable Rate (SVR), (currently 4.79%) for the life of the loan. On Everyday products, the Early Repayment Charge will apply to the outstanding secured loan balance at the time of redemption. Any overpayments in excess of the 10% annual allowance will also be subject to the Early Repayment Charge.

Fee Saver Option
The Fee Saver Option is ideal for customers looking to keep their fee costs as low as possible. This option is available across most of the range of mortgage products, enabling customers to choose between lower rates on a range of Product Fees, or paying a slightly higher rate without a Product Fee. Where fees are added to the loan they will incur interest for the term of the loan.

Applications
Products are available through registered mortgage intermediaries, via the UK based call centre on 0800 0285 277, at mortgages.virginmoney.com, or through the nationwide network of stores. Phone lines are open from 8am to 8pm Monday to Friday, 9am to 3pm Saturday, and 10am to 3pm on Sunday.


NOTES TO EDITORS

About Virgin Money

  • Virgin Money provides savings, mortgages, credit cards, pensions, investment and protection products to over four million customers
  • Virgin Money’s business ambition is to make “everyone better off” – this philosophy underpins our approach to business by offering good value to customers, treating employees well, making a positive contribution to society and delivering a profit to shareholders
  • Virgin is the official sponsor of the London Marathon, the biggest annual fundraising event in the world. Virgin Money leads the London Marathon sponsorship with the ambition to help runners raise £¼ billion over 5 years and will use its infrastructure, online capability and financial expertise to deliver that through Virgin Money Giving