Virgin Money has issued a warning to anyone who has a mortgage with them. The major bank has hiked mortgage rates amid market turmoil – with brokers warning OTHER lenders could also follow suit after the Labour Party Budget in October.
Virgin Money has upped rates on a selection of fixed deals by up to 0.2 percentage points. Virgin Money has also hiked two and five-year fixed rates for customers with a loan-to-value mortgage of 65% or 75% by 0.2 percentage points.
Selected shared ownership fixed rate deals have increased by up to 0.2 percentage points. Product transfer five-year fixes for those with a 65% loan-to-value have been hiked by 0.1 percentage points, too, Virgin Money has said.
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David Hollingworth, associate director at L&C Mortgages, said: “There’s been a steady flow of lender price changes feeding through since last week and it’s highly likely that there will be more to come. Skipton BS, TSB and Leeds BS are all examples of those that made some selected increases last week.
“Virgin Money is one of the lenders continuing that trend into this week as lenders adjust their pricing to account for the slightly higher swap rates feeding into the market caused by the turmoil in the gilt market and pressure on government borrowing costs.”
Meanwhile, Nick Mendes, from broker John Charcol, said: “Prices are still rising, and while the Bank of England might be thinking about cutting interest rates in the future to support the economy, it’s not guaranteed. If that happens in February which hasn’t been priced in by markets, it would ease some of the pressure on mortgage rates, but it’s not something we can count on just yet.”
Nick said: “For anyone nearing the end of a fixed-rate term or considering a new mortgage deal, it is vital to act quickly. Securing a fixed rate now, even if rates feel high compared to previous years, could offer valuable protection against potential further increases in the coming months.
“Acting decisively will provide peace of mind and stability in what remains a highly uncertain environment.”