Virgin Money Now Offering 15-Year Fixed Rate Mortgages
Virgin Money has launched a new range of residential and buy-to-let mortgages that offer fixed interest rates for up to 15 years.
The new range of products will allow homeowners to be protected from any interest rate rises until 2034 and offer loans up to 95% loan-to-value (LTV) ratio for residential customers. The residential range start with a 15-year fixed rate of 2.55% for borrowers who can pay a deposit of 35% plus a £995 product fee. Customers who can provide a 35% deposit can also get a fixed rate of 2.89% with no product fee.
Other residential mortgages on offer include a 15-year fixed rate of 2.75% at 75% LTV with a £995 product fee, or 2.99% with no product fee. Customers can also get a mortgage at 90% LTV with a fixed rate of 3.75% and no product fee. The new buy-to-let mortgage products range from a 7-year fixed rate of 2.36% at 60% LTV with a £1,995 product fee, up to a 10-year fixed rate of 3.99% at 75% LTV with no product fee.
“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,” said Andrew Asaam, director of mortgages at Virgin Money. “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 broker Private Finance, said: “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 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.”