Virgin Money has announced an increase in mortgage rates, affecting both purchase and remortgage products. This move, effective from 4 September, comes as lenders across the UK adjust their offerings amid changing market conditions.
What Are the New Rates from Virgin Money?
Virgin Money will implement several rate increases across its mortgage products. For purchases, two- and five-year fixed rates will rise by 0.30%, while two-year trackers will see an increase of 0.10%. Additionally, 10-year fixed rates will go up by 0.15%, and shared ownership fixes will also rise by up to 0.30%. For remortgage customers, the rate hikes will be up to 0.20% across two-, five-, and 10-year products.
What Changes Are Happening in the Mortgage Market?
In addition to Virgin Money, several other lenders are making adjustments. Family Building Society will temporarily withdraw all fixed-rate products starting midday tomorrow. CHL Mortgages and ModaMortgages will also withdraw limited edition products today. Newcastle for Intermediaries has reduced rates on selected residential products by up to 0.25% and introduced new base rate tracker deals. Furthermore, Gen H will raise all rates by 20 basis points today.
What This Means for Borrowers and Landlords
For borrowers, especially first-time buyers and those looking to remortgage, these rate increases could mean higher monthly payments and reduced affordability. Landlords may also feel the pinch as borrowing costs rise. With Family Building Society withdrawing fixed-rate options, borrowers may need to act quickly to secure a favourable deal. It’s advisable for all potential borrowers to monitor the current mortgage rates closely and consider locking in rates before further increases occur.
Frequently Asked Questions
How will these rate increases affect my mortgage?
If you are looking to purchase or remortgage, these increases could result in higher monthly repayments, affecting your overall affordability.
Should I consider remortgaging now?
With rates rising, it may be wise to explore remortgaging options sooner rather than later to lock in a better rate before further increases.