Virgin Money Introduces Innovative “Fix and Switch” Mortgages
Virgin Money has unveiled an innovative series of residential mortgages, featuring five-year fixed terms with a unique twist: borrowers gain the freedom to switch after just two years without incurring any early repayment charges. Mortgage borrowers can either opt for another rate with Virgin or re-mortgage to another lender.
This offer is aimed towards prospective home owners that are uncertain about future market trends. It provides a fixed interest rate for five years, offering stability, with the added flexibility of switching product after two years if market conditions improve, without incurring any additional early repayment charges. This option allows homeowners to navigate the market fluctuations with more confidence and adapt their mortgage strategy accordingly. Plus, you can get a higher mortgage amount with a five-year fixed rate than with a two-year fixed rate. This offer is ideal for prospective home owners who want to be prepared for any market scenario.
The new product range is available at 85% and 90% for residential purchases fixed at 5.14% and 5.27% respectively for five years. The two products come with a £500 cashback incentive with no product fees.
Representative example at 85% loan to value:
For a property purchase of £750,000 with a capital and interest mortgage of £637,500 payable over 25 years. The mortgage will initially be on a fixed rate of 5.14% for 5 years, then the variable rate, currently 9.49%, for the remaining 20 years. There would be 62 payments of £3,778.95 followed by 238 payments of £5,261.29. The total amount repaid would be £1,486,337.92 made up of the initial loan amount (£637,500), the interest payable (£848,981.72), valuation fee (£331) and chaps payment (£25). £500 cash back paid upon completion. The overall cost for comparison is 7.8% APRC representative.
Representative example at 90% loan to value:
For a property purchase of £600,000 with a capital and interest mortgage of £540,000 payable over 25 years. The mortgage will initially be on a fixed rate of 5.27% for 5 years, then the variable rate, currently 9.49%, for the remaining 20 years. There would be 62 payments of £3,242.31 followed by 238 payments of £4,470.28. The total amount repaid would be £1,266,533.83 made up of the initial loan amount (£540,000), the interest payable (£723,932.17), valuation fee (£331) and chaps payment (£25). £500 cash back paid upon completion. The overall cost for comparison is 7.8% APRC representative.
Whether you are looking to secure a Virgin “Fix and Switch” mortgage or just looking to find a new deal it is important to get advice and find the product that is right for you. Speak to one of our consultants or call 01628 564631 for help on finding the perfect mortgage for you.
The information contained within was correct at the time of publication but is subject to change
Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage
Source: Virgin Money
