Virgin Money stokes rate war with 2.79% 5-year fix

The summer rate war is heating up with Virgin Money cutting rates by up to 0.26 per cent and launching a five-year fix at 2.79 per cent.

The headline five-year residential deal is part of the lender’s larger loans range, available between £150,000 and £1m. It has been reduced by 0.2 per cent from 2.99 per cent and available to 60 per cent LTV with a £1,495 product fee. It is available through brokers and direct. 

A two-year fix to 90 per cent LTV in the core residential range has been cut 26 basis points to 3.89 per cent with no fee attached. A three-year version is offered at 4.49 per cent, down 19 basis points from 4.68 per cent.

A two-year tracker at 70 per cent LTV is offered at base rate plus 1.15 per cent, down from 1.25 per cent, with £995 fee.

The lender has also cut rates across its intermediary exclusive products, including a 60 per cent LTV two-year fix, which has been cut 0.19 per cent to 1.89 per cent with £995 fee. A three-year version is priced at 2.39 per cent, down from 2.54 per cent.

Also in the broker exclusive range, a two-year buy-to-let fix at 60 per cent LTV has been reduced by 0.07 per cent from 2.65 per cent to 2.58 per cent. A 70 per cent LTV version is down 5 basis points to 2.69 per cent. Both products carry a £1,995 fee.

Virgin Money savings and mortgages director Peter Rogerson says: “The reductions we have made across our mortgage range are great news for borrowers and demonstrate our commitment to providing our intermediary partners with great deals.

“They help a range of customers from those with larger deposits to those looking to get their first foot on the housing ladder.”

Separately, Accord Mortgages has reduced rates across its buy-to-let product range by up to 0.4 per cent.

The biggest cuts are to the lender’s 65 and 75 per cent LTV ranges, which have both been reduced by 0.4 per cent.

A 65 per cent LTV two-year tracker is cut to 2.44 per cent with £800 fee, while a fixed-rate alternative is available at 2.69 per cent, down from 3.09 per cent with £1,800 fee. Both products offer a free valuation and £300 cash back on completion.

In the 75 per cent LTV band, a two-year fix is reduced from 2.99 per cent to 2.59 per cent, with £2,495 fee. A tracker alternative is offered at 2.84 per cent, down 40 basis points, with £800 fee, free valuation and £300 cash back.

A 60 per cent LTV two-year fix is cut 0.2 per cent from 2.94 per cent to 2.74 per cent, with £800 product fee and £500 cash back on completion.

Accord Mortgages managing director Jill Evans says: “We’re helping borrowers in the very competitive buy-to-let market with reductions of 0.4 per cent on selected mortgages.”

Nationwide, Barclays, NatWest and Leeds Building Society have all announced rate reductions in recent weeks.