Virgin Money has reduced rates on its purchase, remortgage and product transfer products from today.
Purchase rates have been reduced by up to 0.20% on the ten-year fixed rate, in addition to reductions of 0.15% on the two-year fixed rate, reductions of up to 0.10% on the five-year fixed rate and reduced prices on shared ownership rates by as much as 0.10%.
The renewed mortgage interest deduction for two and five years has also been reduced by 0.19% and 0.16% respectively.
Additionally, product transfer selected two-year fixes have been reduced by as much as 0.14%, selected three-year fixes have been reduced by up to 0.06%, and selected five-year fixes are now down as much as 0.07%.
Buy-to-let (BTL) product transfer selected fixed interest rates for two, three and five years have been reduced by up to 0.15%.
Commenting on the new rates, Aaron Strutt, product and communications director at Trinity Financial, said: “Virgin has started the week with rate cuts, but Coventry has also just launched some really good deals.”
“The building society has a best buy fix of 4.24% for two years, a fix of 4.44% for three years and NatWest and Coventry have a five-year fix of 4.34%. These two and five year fixes are only exceeded or just matched by Nationwide and the £1,499 mortgage cost options.”
“If Coventry undercuts virtually the entire market with the best mortgage deals, their rates often don’t stick around for long because the lender gets a lot of inquiries.”
“There is a real chance that we will see further rate cuts this week as we get closer to the illusory sub-4% fixed rate. It is interesting that two, three and five year interest rates are now so close.”
“More lenders are offering their solutions at very similar prices and while the shorter-term solutions and trackers are the most popular products, homebuyers may be tempted to take a five-year solution if the price is much the same.”
Yesterday, Newcastle for Intermediaries also announced it would be making changes to its existing mortgage products for customers, including a number of withdrawals.