Virgin Money has announced an increase in rates across several of its mortgage products, a change that will take effect today, November 14, 2024, at 8 p.m. Brokers working with the lender have been advised to submit applications before the deadline to secure current rates. This rate adjustment affects a range of products, including the popular Retrofit ‘Boost’ five-year fixed-rate product.
Rate Adjustments on Key Mortgage Products
Virgin Money’s recent update includes an increase of 0.20% on the Retrofit ‘Boost’ mortgage product with an 85% loan-to-value (LTV) ratio. The new rate will now begin at 4.84% for a five-year fixed term. This product, designed to support borrowers making energy-efficient home upgrades, has been a key offering for clients aiming to enhance their property’s sustainability.
Virgin Money highlighted the importance of applying before the 8 p.m. deadline to secure the current rates, emphasizing that the adjustments align with broader market trends. “We understand the significance of timing in mortgage applications and encourage brokers to complete submissions promptly to avoid missing out on current rates,” stated a spokesperson for Virgin Money.
Rising Rates Reflect Market Trends
The adjustments come amid a climate of fluctuating interest rates as lenders respond to shifts in the economy and housing market. Virgin Money’s decision to increase rates mirrors similar moves by other lenders in recent months, as rising inflation and economic factors impact mortgage interest rates industry-wide. The lender’s adjustments signal that homeowners and buyers may face additional costs in securing long-term fixed-rate mortgages.
Market experts note that while these increases may put additional pressure on borrowers, Virgin Money’s five-year fixed-rate option still offers competitive rates within the 85% LTV range. Brokers are advised to carefully assess client needs, particularly for those looking at sustainable home improvement options through the Retrofit ‘Boost’ product.
Brokers Urged to Act Quickly
In light of the rate hike, Virgin Money has urged brokers to act quickly. Brokers received an official notice advising them to submit applications by 8 p.m. to lock in the current rates before the new rates take effect. Virgin Money’s update underscores the importance of timing in the mortgage process, particularly as interest rates continue to fluctuate.
With these rate increases, Virgin Money joins other lenders in adapting to the evolving market, indicating a potential shift in mortgage product affordability for borrowers. Brokers are expected to guide clients through these adjustments, helping them understand the implications of rising rates on both new purchases and remortgage options.
