Virgin Money has announced the launch of a new range of fixed-rate mortgages for new build homes, which will include a two-year fixed rate up to 90% LTV at 2.19% and a three-year option at 2.44%, both with a £995 product fee and £300 cashback. A five-year fixed deal will also be available at 2.85%.
Andrew Montlake, director at adviser firm Coreco, said it’s good to see more lenders coming to the fore in this part of the market: “This new range from Virgin Money helps to offer more choice to consumers with a good set of well-priced products and improved criteria.”
The bank has increased the maximum loan to value on new build products to 90%, while the new build mortgages will be valid for seven months, with an option to extend for a further seven months if construction is not completed. This range came as a response to the feedback given by builders and intermediaries that stated that clients wanted more flexibility.
“There is much more to do, however, to try to reduce the reliance on government schemes such as Help to Buy, so that when this does eventually end we are not left with issues or forced to prolong the scheme longer than necessary,” added Andrew.
Andrew Asaam, director of mortgages at Virgin Money, also commented on the news: “This range will provide a competitive option for clients considering a new build property.”
