Virgin Money increases mortgage rates up to 0.25%

VIRGIN Money is the latest lender to increase its mortgage rates with rises of up to 0.25% today as brokers urge borrowers to “act quickly” before they go up further.

For purchase mortgages, its two-year fixed rates have increased by 0.25%, starting from 3.92%. 

While its Shared Ownership fixed rates have also increased by 0.25%, starting from 4.01%.

Its remortgage rates are up by up to 0.15% while its product transfer rates are up by up to 0.11%.

This comes as other lenders started pricing in higher rates amid the Middle East war.

From today, Nationwide is increasing selected fixed rates by up to 0.25% while HSBC are increasing residential and buy-to-let fixed rates.

And Coventry Building Society are raising its rates from Monday as swap rates continue to rise on the back of inflationary concerns due to events in the Middle East.

Brokers said rising rates is bad news for borrowers and rising inflation, due to the US and Israel’s attacks on Iran, could mean that rates keep going up.

Adam Stiles, Managing Director at London-based Helix Financial Partners, said

He added: "Rates are going up across the board. This isn't unexpected considering the wider global economic activity which in turn has meant markets are highly volatile. Lenders will increase rates to absorb the volatility. 

“Should you act quickly to secure something? Yes, but make sure you or your broker keep an eye on rates if they come down between now and when you complete or switch products. Locking in now at least hedges any further rates rises.”

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, said 

He continued: "Virgin Money has joined the many High Street lenders that have had no choice but to reflect the higher Swap rates, with a variety of rate increases announced this week. 

“The Middle East conflict has certainly disrupted the progress in mortgage costs seen in 2026, and if it continues, we could see rates stagnate at their current levels for the rest of the year.”

Simon Bridgland, Broker at Canterbury-based Charwin Private Clients, said 

He added: “Yesterday started with Coventry BS announcing they were upping rates across the board. Following swiftly behind were HSBC and Nationwide, so seeing Virgin do the same by up to a hefty 0.25% brings home the reality of the early impact of war miles from here. 

"If you think you can arrange things when you get home, you've likely missed the boat, by the time you have all your ducks in a row to submit an application, rates will have already increased with your lender. 

"But don't let that deter you as it's still not too late to get a great rate before the rest of the high street catch up to the reality of what the the rest of March will look like rate wise. We could end up seeing a 0.5% difference in rates this week to the end of next."

Steven Greenall, Mortgage and Protection Advisor at Rayleigh-based Protect & Lend, said 

He added: “The market has been swift to react to events in the Middle East showing the UK economy is not immune. 

"However, just as quickly as rates move up, a few days of transit traffic through the straits of Hormuz choke point could see rates move back down just as quick.”

Nick Harris, Founder at Wokingham-based Quarters, said 

He added: “A 0.25% rise won’t stop the market, but it does remind buyers that mortgage rates can shift quickly. When one major lender moves, others often follow because they’re reacting to the same funding costs behind the scenes. For buyers, the key message is not to panic but to be prepared. 

"If you’ve found the right property, locking in a mortgage rate can provide useful protection while still leaving room to switch if cheaper deals appear before completion. 

"In markets like Wokingham we’re still seeing buyers push ahead with moves because most decisions are driven by life events - schools, space and relocations - rather than small movements in mortgage pricing.”

Sarah Fox-Clinch, Director at Fox Davidson, said 

She added: "This rate rise is another lender responding to higher short term swap rates. These have increased recently due to the turmoil in the Middle East and higher oil and energy prices. Virgin Money was bought out by Nationwide towards the end of 2024, so it would make sense that Virgin follows it's parent company by increasing rates. 

"Lenders aren't copying each other but they do influence each other. I am therefore expecting to see other high street names announce rate increases over the next few days and weeks. It makes sense to speak to your lender or broker about locking in a deal now if you have a current mortgage rate which is due to expire in the summer. 

"It may be possible to secure a rate now but then also review it before you complete. Some lenders may allow you to move your mortgage offer to a lower rate if interest rates subsequently fall and you have not yet completed."