A new five-year fixed rate mortgage allows borrowers to switch after two years.
Virgin Money’s new Fix and Switch mortgage gives borrowers the best of both worlds.
The five-year fixed rate offers payment security alongside the flexibility to move to another product without charge after two years.
Fix and Switch is available exclusively through mortgage advisers. The product is available to residential customers taking a mortgage at up to 90 per cent of the property’s value.
What’s new?
The mortgages available at launch include a fee-free five-year fixed rate at 5.14 per cent up to 85 per cent loan-to-value and at 5.27 per cent up to 90 per cent loan to value.
Both mortgages come with Early Repayment Charges for the first two years.
These fee-saver deals also offer customers a cashback incentive of £500. Customers will have their affordability assessment for Fix and Switch based on a five-year deal.
David Hollingworth, associate director at L&C Mortgages said:
“The mortgage market has provided so many ups and downs in the last couple of years that it’s understandable that borrowers will be struggling to decide on the best approach.
“Virgin Money’s innovative product offers an alternative and welcome solution to those that feel there’s room for rates to improve over the next couple of years but don’t want to be caught out if the outlook shifts again. There will no doubt be customers attracted to the ongoing certainty of rate if required but with the flexibility to review in two years.”
Craig Calder, head of secured lending at Virgin Money, added: “In today’s higher interest rate environment, many mortgage borrowers are looking for long-term payment certainty, but don’t want to be tied in for the long-term.
“Fix and Switch is the perfect solution for them, providing the certainty of a five-year fixed rate with the flexibility of a two-year ERC if rates begin to fall.”
