Virgin Money has launched a new range of long term fixed rate residential and buy-to-let products, with fixed mortgages available for up to 15-years.
The new products come with the same features available across Virgin Money’s shorter-term product range, including overpayments of up to 10% per annum without penalty, payment holidays and portability to a new property if the customer moves home, subject to underwriting criteria at the time.
The new residential range, offering loans up to 95% LTV, includes:
- 15-year fixed rate at 65% LTV at 2.55% with £995 product fee
- 15-year fixed rate at 65% LTV at 2.89% with no product fee
- 15-year fixed rate at 75% LTV at 2.75% with £995 product fee
- 15-year fixed rate at 75% LTV at 2.99% with no product fee
- 15-year fixed rate at 90% LTV at 3.75% with no product fee
The new buy-to-let range, offering loans up to 75% LTV, includes:
- Seven-year fixed rate at 60% LTV at 2.36% with £1,995 product fee
- Seven-year fixed rate at 75% LTV at 3.24% with £995 product fee
- 10-year fixed rate at 60% LTV at 2.46% with £1,995 product fee
- 10-year fixed rate at 75% LTV at 3.99% with no product fee
Andrew Asaam, director of mortgages at Virgin Money, said: “Fixed rates of longer than 10-years are not generally available in the UK market but, given the economic backdrop, they can be a perfect choice for borrowers who are looking for longer interest rate certainty. We are delighted to continue our tradition of innovation by adding them to our range, giving customers the option to take advantage and lock in the low rate environment for an extended period.
“Buy-to-let customers can also benefit, as our new range offers an attractive choice for landlords with fixed rates of up to 10-years.”
Chris Sykes, mortgage consultant at Private Finance, added: “This exciting new offering from Virgin Money is great news for consumers looking to lock into today’s low rates on a long-term basis. We believe this 15-year fixed rate product is the first of its kind in the UK mortgage market, and the launch demonstrates just how innovative lenders are prepared to be to maintain their competitive edge as the battle for new business intensifies.
“Crucially, the rates on this product are very competitive, even for customers at higher loan-to-value (LTV) bands, and are similar to those currently on offer at a 10-year fix. Consumers can therefore benefit from an additional five years of peace of mind for little additional cost. Virgin Money is clearly of the opinion that interest rates are unlikely to rise significantly even within the next decade, which is a reassuring indication of future mortgage affordability.
“A 15-year fix is a considerable commitment and therefore won’t be suitable for everyone. Those anticipating a move within this timeframe will likely to be suited to a shorter-term product. However, homeowners in their ‘forever home’ looking for a way to guarantee their monthly repayments may well be tempted by the prospect of financial security that lasts beyond the next decade, particularly in today’s uncertain times.”