Mortgage rates have fallen to historic lows in recent times but the bank boss told borrowers not to wait for much longer if they want to take advantage.

She told the Telegraph that the financial restrictions placed on banks meant rates had little chance of falling lower.

“I would have thought that, given the capital position of banks and the leverage ratio, we’re probably in a place where it’s unlikely the price will go down further,” she said.

“Certainly the market’s as competitive as I can remember it. The mortgage market has opened this year lower than it did last year, that’s fired competition.”

Figures released by the bank showed its mortgage balances grew 11.8% in the last financial year to reach £21.9bn. This means Virgin Money has around 4% of the total UK mortgage market.

Gross new lending jumped to £5.8bn in the year, a rise from the £5.6bn recorded in 2013.

“Our mortgage business remains high-quality, with an average loan-to-value of new lending of 67 per cent and a buy-to-let exposure of around 15 per cent,” Gadhia added.

“Impairments in our mortgage business reduced significantly during the course of the year.”