Virgin Money has announced an increase in mortgage rates, affecting both purchase and remortgage products. This change, effective from 4 September, comes as lenders across the UK adjust their offerings in response to market conditions, impacting borrowers and investors alike.
Which Rates Are Changing?
Virgin Money’s adjustments include a rise of 0.30% for two- and five-year fixed purchase mortgages, 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 products will also rise by up to 0.30%. For remortgaging customers, rates on two-, five-, and 10-year products will increase by up to 0.20%. These changes reflect a broader trend in the mortgage market, with several lenders making similar adjustments.
What Other Lenders Are Doing?
In addition to Virgin Money, other lenders are also adjusting their mortgage products. Family Building Society plans to temporarily withdraw all fixed-rate products starting midday tomorrow, while CHL Mortgages and ModaMortgages will cease their limited edition products as of 5pm today. Newcastle for Intermediaries has reduced rates on selected residential products, with cuts of up to 0.25%. Gen H announced a rate increase of 20 basis points effective today, and Pepper Money has reduced rates across its ranges.
What This Means for the Mortgage Market
Borrowers looking to secure a mortgage will face higher costs due to these rate increases, particularly those seeking fixed-rate products. This could make homeownership less affordable for first-time buyers and those looking to remortgage. Investors in buy-to-let properties may also feel the pinch, as higher rates could affect rental yields and overall investment viability. It’s essential for all parties to stay informed about these changes and consider locking in rates before further increases occur. For more details, check the current mortgage rates.
Frequently asked questions
How will these rate increases affect my mortgage application?
If you’re applying for a mortgage, the increased rates could mean higher monthly payments. It’s advisable to review your options and consider acting quickly to secure a better rate.
Should I wait to remortgage or act now?
Given the current trend of rising rates, it may be prudent to remortgage sooner rather than later to avoid potential increases in costs.