Virgin Money Reduces Rates and Launches New Products.

by Mark Johnston

Virgin money reduces rates and launches new products.

 Following the acquisition of Northern Rock in January 2012, Virgin Money now  provides credit cards, mortgages, savings, pensions, investment and protection products to over four million customers.

Virgin Money have stated that their  business ambition is to make “everyone better off” and this philosophy underpinned in their approach to business by offering good value to customers.

Basically Virgin Money was launched, to quote themselves, in order to give customers a better deal. They aim to offer customers a wide range of great value financial products that are easy to understand and sort out.

 It seems that Virgin Money has followed many of its rivals in reducing  mortgage rates and therefore they may have joined the mortage rate war!

Virgin Money has recently cut its rates by up 0.2 per cent, including on two year fixed rate products up to 90 per cent loan to value (LTV). These cuts come at the same time as Barclays annouce that they too are slashing their interest rates.

Two year fixed rates have been reduced across loan to value (LTV) tiers from 70 per cent to 90 per cent. The 70 per cent loan to value (LTV) two year fixed rate are reduced to 3.19 per cent, from 3.29 per cent while the rates on 80 per cent, 85 per cent and 90 per cent have also reduce by up to 0.20 per cent .

The banks three year fixed rates have also fall to 3.49 per cent, from 3.59 per cent on  up to 70 per cent loan to value (LTV) with a product fee.

It is also cutting its buy to let two-year fix at 60 per cent loan to value (LTV) by 0.2 per cent, down to 3.79 per cent, but there is a hefty fee of £1,995.

While Virgin Money has reduced interest rates across a number of its residential and buy to let mortgage products, it is also added a new 60% loan to value (LTV) tier for residential mortgage customer.

The new 6o per cent loan to value (LTV) fixed rates are available to both  new purchase and re-mortgage customers at 2.99 per cent with a product fee, or 3.39 per cent with no product fee. 

 As with other products in the range, customers re-mortgaging from another lender will benefit from free standard legal services and a free basic valuation, they also continue to offer a cash back incentive for residential customers on a number of their products.

This is the second time in as many months that Virgin Money has reduced its interest rates; back in June 2012 they reduced rates on a number of fixed rate products by 0.16 per cent.

Some experts feel that these recent cuts are due to a highly competitive market at the moment, with some lenders making several reductions in the last few weeks.

In conclusion whether  buying a home for the first time or coming to the end of a current mortgage deal, if you are looking to freeze the rate you pay, you could not have chosen a better time.



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