With two and five-year fixed mortgage rates making up most of borrowers’ choice, there has been significant competitive pressure in those areas.
Virgin Money’s three-for-two range offers the rate for three years at two-year pricing and includes both an owner occupier option and a buy-to-let deal, while the residential product to benefit is a 90 per cent LTV product.
It is also a no-fee deal, plus a £300 cashback or free valuation and basic legal work for remortgage.
Virgin Money already offers the lowest 90 per cent three-year fix at 1.99 per cent with a £995 fee, so this no-fee option at 2.13 per cent stacks up well.
On the buy-to-let side, the three-for-two offer gives landlords the chance of three years of security at a rate of 1.56 per cent up to 75 per cent loan-to-value with a £1,995 fee.
There is a £500 cashback for purchases and remortgages benefit from a free valuation and choice of free basic legal work or a £300 cashback.
The offering highlights what can be an overlooked product.
David Hollingworth is associate director of communications at L&C Mortgages
