In September Virgin Money cut it’s rates for residential and buy to let mortgages.
Their 2 year fixed rate mortgage has been reduced to to 2.79%, available up to 60% LTV. For a 70% LTV the rate is being cut down to 2.99%, available on a two year tracker rate.
Virgin Money has made the cuts to demonstrate their commitment to supporting the mortgage market with new lending. The cuts will help buy to let mortgage customers in particular, and the deals include increased cashback available.
I think it is good to see some lenders cutting their rates especially as the government (you and me) are pumping £5Bn into the financial system to improve things.
The benefits will take time to filter through but clearly any positive action is welcomed and all lenders should be embracing the scheme and passing on the savings or be named and shamed!
Some of the latest new deals have tended to require large deposits, 25-40% which is not helpful for stimulating the first time buyer market and we will not have the much needed bottom up effect.
The powers that be need to ensure that its all well and good making headlines with these initiatives but the funds are utilized in the way it was intended…
For advice on residential or buy to let mortgages contact us.
October 18, 2012
Buy to let mortgage