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Virgin announces cuts and expands Fix & Switch range: "Rate cuts at higher loan-to-values are gaining momentum"

Journalist: Justin Moy, Contributing Editor

ended 05. September 2024

Virgin Money has today announced further rate cuts of up to 0.28% and announced the expansion of its Fix & Switch range, now available for purchase, remortgage and BTL applications. With this product, borrowers get the security of mortgage rate, but only a 2-year Early Repayment Charge, allowing for better affordability on a 5-year deal but providing an exit option after two years where necessary. Newspage asked brokers for their views, below.

6 responses from the Newspage community

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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
Rate cuts at higher loan-to-values are gaining momentum and the increased demand and activity they are triggering will ripple throughout the property market. Lenders are cutting rates left, right and centre right now and we're seeing demand grow by the day. The property market has entered the autumn on the front foot and sentiment is imporiving by the day.
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Tony Castle
Managing Director at PFG Mortgages
This is a great move from Virgin. It gives borrowers a lot of flexibility and takes away the concerns of being locked into a higher rate for such a long period with penalties, especially with the way rates are currently reducing.
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Simon Bridgland
Director at Charwin Private Clients
For borrowers wishing to hedge their bets and benefit from Virgin’s Fix and Switch range, these latest rate reductions are giving them the feel good factor in spades. Not only are they getting the low tie-in period of two years on a 5-year mortgage, along with the 5-year loan to income multiples resulting in higher loan sizes, they now come with a decent rate reduction at the higher loan to values. What's not to love? Hopefully over the next week we will see more competition at the higher loan to value end of the market. With more rate releases scheduled for tomorrow, it could be the start of a great weekend.
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Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
Virgin Money has unleashed another barrage of rate cuts as part of their expanded Fix & Switch range, a move that will be a breath of fresh air for borrowers suffocating under high rates. This latest offering is particularly appealing in today's volatile economic environment, where interest rates remain unpredictable, providing stability and flexibility. With the mortgage sector engaged in a game of financial leapfrog, as lenders vie to outdo each other, prospective borrowers find themselves in the unusual position of having options, a luxury that seemed impossible not long ago. However, while optimism is in the air, caution remains, as the future trajectory of inflation is still uncertain, and any unexpected rise could quickly alter the landscape. But with the mortgage market as unpredictable as the British weather, Virgin's latest offering might just be the umbrella borrowers need.
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Justin Moy
Managing Director at EHF Mortgages
This is a great example of where lenders don't need to fight over who has the cheapest rates, and Virgin provide options where you have the affordability benefits of a 5-year deal but with an early exit without fees if appropriate. This can give borrowers an affordabilty boost without the need to commit to a long-term deal. This should be popular with BTL landlords in particular, and overall it is a very welcome range of products for borrowers.
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Ken James
Director at Contractor Mortgage Services
Fix and Switch is a great product. Many custmers are feeling fragile and concerned that this new period of falling rates could just as eaily reverse gears and start to rise again. Knowing that if the markets do prove their resilience and rates continue to reduce they can, after 2 years without any penalties, switch to another Virgin deal offers them a sense of security that is hard to find elsewhere. I get a sense that this product has not really hit the mark for many as it should have done and maybe the new adjustments will open up an opportunity for borrowers who may have missed that this even exists.