Virgin Money has announced a new 15-year fixed rate mortgage for residential purchases alongside the launch of 10-year buy-to-let offerings.
The new residential range is available at up to 95 per cent LTV, where rates are set at 4.58 per cent with no product fee.
At the lower LTV end – 65 per cent – rates for residential purchases begin at 2.55 per cent and commanda £995 product fee.
The new decade-long BTL fixed range starts at 60 per cent LTV at 2.46 per cent with £1,995 product fee.
All of these new products allow overpayments of up to 10 per cent per annum with no penalties as well as payment holidays.
Virgin Money director of mortgages Andrew Asaam says: “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.”
Private Finance mortgage consultant Chris Sykes adds: “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.
“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.”