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Clydesdale and Virgin cut rates by up to 0.4% adding "some more va va voom into the mortgage market"

Journalist: Justin Moy, Contributing Editor

ended 26. September 2024

Both of the Virgin brands, Virgin Money and Clydesdale Bank, have today announced a wave of cuts of up to 0.4% across their residential and buy-to-let ranges. With more rates below that magic sub-4% line, Newspage asked brokers for their views, bottom.

4 responses from the Newspage community

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Mike StatonVerified
Director at Staton Mortgages
Traditionally, we see a lot of people purchasing at this time of year to try and get into their new home before Christmas. I feel this is one of the key drivers of the rate reductions we're seeing, with lenders wanting to have a slice of the Christmas rush cake. Lenders also appear to be of the view that rates will continue to drop as indicated with SONIA SWAP rates. With the current 1 year SWAP at 4.2%, I am confident we will see a base rate reduction to the 3.5%/3% mark by this time next year, unless the Labour Party throw a financial hand grenade in the Halloween Budget.
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Iain SwattonVerified
Director at Exemplar Financial Services
It's fantastic to see Clydesdale and Virgin stepping up to reduce their rates, clearly not wanting to miss out in what feels like a growing trend across the market. Every day seems to bring more positive news for borrowers, with rates really starting to fall. It's especially encouraging to see more rates with a 3 at the front. This is great news for buyers and those looking to remortgage, and hopefully, these reductions will help reignite the property market. The more competitive the environment, the better for consumers.
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Editor
Justin MoyVerified
Managing Director at EHF Mortgages
This is a huge reprice by the Virgin / Clydesdale group, showing just how competitive it wants to be while the Nationwide purchase continues at full steam. Cuts of up to 0.4% will be welcomed by borrowers new and old. They are very much 'open for business' and looking to finish their year strongly. Virgin have just added some more va va voom into the mortgage market.
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Gabriel McKeownVerified
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
From fiscal famine to feast, mortgage rates are plummeting as lenders offer eager borrowers a smörgåsbord of savings. In a bold move reflecting the shifting tides of the financial landscape, Virgin Money and Clydesdale Bank have announced significant rate cuts. This strategic adjustment comes as swap rates decline and competition intensifies, setting the stage for a dynamic close to 2024. These widespread reductions are not merely a response to current market conditions but also a strategic play from lenders anticipating further rate cuts. Despite a period of pause from the BoE, general expectations for future rate cuts remain strong, with lenders likely anticipating a reduction as early as November. Recent trends show a consistent decline in swap rates over the past few months, driven by improved economic conditions and decreasing inflation expectations. The lending pendulum may have finally swung, with falling rates acting as a wrecking ball to the walls of unaffordability.