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Virgin Money to cut buy-to-let rates as part of mortgage range update


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.

  • New buy-to-let mortgage range to be launched, with rates reduced by up to 0.90%
  • Buy-to-let two year fixed rates available from 2.89%
  • Residential interest-only mortgage lending policy to be revised from 9 December 2013

Virgin Money has today announced an improved buy-to-let mortgage range designed to reinforce its position in this important segment of the mortgage market.

New buy-to-let fixed rate products on offer include:

  • Two year fixed rate at 3.25% with a £1,995 product fee – a reduction of 0.13% (60% LTV)
  • Two year fixed rate at 4.59% with no product fee – a reduction of 0.50% (60% LTV)
  • Three year fixed rate at 4.69% with no product fee – a reduction of 0.90% (60% LTV)

New buy-to-let tracker products on offer include:

  • Two year tracker at 3.55% with a £995 product fee – a reduction of 0.20% (60% LTV)
  • Two year tracker at 2.89% with a 2.5% product fee – a reduction of 0.10% (60% LTV)

New buy-to-let products available exclusively through intermediaries:

  • Two year fixed rate at 2.89% with a £2,495 product fee – a reduction of 0.30% (60% LTV)
  • Two year fixed rate at 3.19% with a £2,495 product fee – a reduction of 0.15% (70% LTV)

All products will be available from Tuesday 3 December 2013, and cashback of £750 remains available across Virgin Money’s core range of buy-to-let products (excluding intermediary exclusives).

In addition, Virgin Money has announced plans to revise its policy for new, interest-only residential mortgage lending (including part repayment / part interest-only lending) in response to feedback from its intermediary partners. The policy changes announced today will be introduced on Monday 9 December 2013 and do not affect buy-to-let lending, or existing residential mortgage loans.

Virgin Money will remove the current minimum loan size of £300,000 for interest-only residential lending and instead introduce a minimum property value of £500,000 and a minimum gross income requirement of £100,000 in total for applicants (including bonuses). In addition, Virgin Money will no longer offer the option of interest-only lending to First Time Buyers.

Virgin Money continues to believe that residential interest-only mortgages remain an appropriate option for more experienced customers who can demonstrate confidence in repaying their loan at the end of its term through a clear and evidenced repayment plan.

As part of these changes, Virgin Money will also no longer accept the sale of a customer’s primary residence or the use of Cash ISAs as a repayment vehicle.

Other suitable repayment vehicles will continue to be accepted, subject to the usual criteria, including; investment plans, personal pension plans, endowment policies, sale of a property other than primary residence and a share portfolio.

There are no changes for existing interest-only loans, which are not impacted by the planned changes. Virgin Money’s interest-only policy for buy-to-let will also remain unchanged.

After the implementation of the changes on 9 December, Virgin Money will honour any interest-only or part repayment / part interest-only Decisions in Principle (DIP) that have been approved under the previous interest-only policy for a period of 90 days from the date of the DIP.

Anthony Mooney, Director of Financial Services at Virgin Money, said “We are delighted to announce the launch of our new range of competitive buy-to-let products, which underlines the importance we place on this segment of the market. We are also announcing some changes to our residential interest-only lending policy that will take effect on 9 December. We are making these changes in response to feedback from our intermediary partners, and given our experience that the vast majority of interest-only customers have higher incomes and property values. We remain of the view that interest-only remains an important option for more experienced borrowers who have a clear and demonstrable repayment plan and our revised policy reflects that.”

Mooney added: "Whilst interest-only mortgages are an important part of the mortgage market, they represent around 10% of new mortgages at Virgin Money. The wider product range that appeals to the vast majority of Virgin Money mortgage customers remains unaffected by these changes."


Media Contacts:

Virgin Money Press Office
Tel: 0191 279 4676

Product Details

Buy-to-let Everyday range – all including cashback of £750

ProductMax LTV£1,995 fee£995 fee2.5% fee2.0% feeFee Saver
2 year fixed60%3.25%3.65%2.89%3.29%4.59%
3 year fixed60%3.59%4.59%3.89%3.99%4.69%
5 year fixed60%34.09%4.68%3.99%4.29%4.89%
2 year tracker60%n/a3.55%2.89%3.29%n/a%

Intermediary exclusive – buy-to-let Everyday fixed rate mortgages

Fixed termProduct feeMax LTV 60%Max LTV 70%
2 years£2,4952.89%3.19%

Early Repayment Charges

Following the fixed rate or tracker period, the loan will revert to the Virgin Money Buy-to-Let Variable Rate, (currently 4.99%) 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.


Products are available through registered mortgage intermediaries, via the UK based call centre on 0800 0285 277, at, 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.


About Virgin Money

  • Virgin Money provides savings, mortgages, credit cards, pensions, investment and protection products
  • 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 Money is the official sponsor of the London Marathon, the biggest annual one day fundraising event in the world. Virgin Money aims 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

Supplementary notes

  • The information contained in this press release is intended solely for journalists and should not be used by consumers to make financial decisions. Any consumer interested in learning more about these products should visit for full terms and conditions.

Virgin Money plc - Registered in England and Wales (Company No. 6952311). Registered Office - Jubilee House, Gosforth, Newcastle upon Tyne NE3 4PL. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.