Virgin Money launches 15-year fixed rate mortgage
In a further sign that low interest rates are the new normal, Virgin Money has launched a new range of long term fixed rate residential and buy-to-let products, offering borrowers interest rate certainty for up to 15 years.
The new products will include overpayments of up to 10 per cent per annum without penalty, payment holidays and portability to a new property if customers move home, subject to underwriting criteria at the time.
The new residential range, offering loans up to 95 per cent LTV, includes:
- 15 year fixed rate at 65 per cent LTV at 2.55 per cent with £995 product fee
- 15 year fixed rate at 65 per cent LTV at 2.89 per cent with no product fee
- 15 year fixed rate at 75 per cent LTV at 2.75 per cent with £995 product fee
- 15 year fixed rate at 75 per cent LTV at 2.99 per cent with no product fee
- 15 year fixed rate at 90 per cent LTV at 3.75 per cent with no product fee
The new buy-to-let range, offering loans up to 75 per cent LTV, includes:
- 7 year fixed rate at 60 per cent LTV at 2.36 per cent with £1,995 product fee
- 7 year fixed rate at 75 per cent LTV at 3.24 per cent with £995 product fee
- 10 year fixed rate at 60 per cent LTV at 2.46 per cent with £1,995 product fee
- 10 year fixed rate at 75 per cent LTV at 3.99 per cent 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 of mortgage broker Private Finance, said: “A 15-year fix is a considerable commitment and therefore won’t be suitable for everyone. Those anticipating a move within this time frame 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.”