Virgin Money announces rate hikes

Virgin Money announced increases to all of its residential fixed rate and buy-to-let (BTL) products.

The group said on Monday that all residential fixed rates would increase between 0.10% and 0.25%, and all BTL fixed rates by up to 0.27%.

In addition, the group has announced that it will withdraw its fixed rate of 75% loan-to-value (LTV) over five years to 1.70% with a fee of £995.

Massive UK bank branch closures

The announcement comes two weeks after the company released its trading update results, showing its market share in mortgages fell slightly by 0.5% to £57.8bn last quarter. 2021.

Read more: Mortgage professionals mull over BOE rate hike

According to industry reports, the group said it would be more “selective” in its mortgage lending to secure returns, after admitting it would accept lower profit margins on its home loan products in the face of a increased competition in the mortgage sector.

The group also indicated that it would continue to invest in technology in order to maintain its market share in the medium term.

Virgin Money is the latest lender to raise interest rates. Last week, the Nationwide Building Society announced plans to raise both its base mortgage rate (BMR) and standard mortgage rate (SMR) following the Bank of England’s decision to double its rate. base at 0.5%.

From March 1, Nationwide will introduce higher rates of 2.50% for its BMR and 3.99% for its SMR product. For Nationwide borrowers with a tracker mortgage, their rate hike will mirror the BoE’s 0.25% increase.

Other lenders have followed suit, including the Principality Building Society, which announced it would raise rates on March 1 by 0.25% for existing account holders of its variable-rate savings products.

Read more: UK economy sees increased annual growth

Santander also announced that from the beginning of March it will increase its standard floating rate by 0.25% to 4.74% and it will increase its tracking rate (FoR) to 3.75% for existing borrowers, as well as all of its mortgage tracker products that are linked to the base rate.

Platform, the mortgage arm of the Co-operative Bank, refrained from raising rates but said it would revise its standard variable rate, which is currently 4.49%.

Halifax said it would write to customers with mortgages affected by the Bank of England rate change and let them know of their new monthly payment.

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