Virgin Money has announced an increase in mortgage rates, impacting both purchase and remortgage products. Effective from 4 September, rates will rise by up to 0.30% on various fixed and tracker products, reflecting ongoing shifts in the UK mortgage market.
What Changes Are Being Made?
The upcoming changes from Virgin Money include a 0.30% increase on two- and five-year fixed purchase products, while two-year trackers will see a smaller rise of 0.10%. Ten-year fixed rates will increase by 0.15%, and shared ownership fixed rates will also rise by up to 0.30%. For remortgage customers, the increases will be up to 0.20% across two-, five-, and ten-year products.
Which Other Lenders Are Adjusting Rates?
In addition to Virgin Money, several other lenders are making significant changes. Family Building Society will temporarily withdraw all fixed-rate products starting midday tomorrow. CHL Mortgages and ModaMortgages are set to withdraw limited edition products by 5pm today. Newcastle for Intermediaries has lowered rates on selected residential products by up to 0.25% and introduced new base rate tracker deals. Gen H will increase all rates by 20 basis points today at 5:30pm, while Pepper Money and Leeds Building Society are reducing rates on certain products.
What This Means for the Mortgage Market
For borrowers, these rate hikes signal an increase in borrowing costs, which could affect affordability and monthly repayments. Landlords looking to remortgage or purchase new properties may find their options limited and more expensive. Brokers should prepare clients for these changes and help them navigate the shifting mortgage market, particularly as rates are expected to fluctuate further.
Frequently Asked Questions
How will these rate increases affect my mortgage?
The rate increases mean higher monthly repayments for new and existing borrowers, impacting overall affordability.
Should I consider remortgaging now?
If you are considering remortgaging, it may be wise to act quickly before further increases occur, as current rates may be more favourable.