New Launch – Virgin Money 90% LTV Mortgages For First Time Buyers
As a result of the coronavirus pandemic, many lenders put a freeze on 90% loan to value mortgage options, as they judged these too risky during the financial climate.
However, as the UK moves out of lockdown and back into this new normal way of life, the market is also seeing lenders beginning to offer these lower LTVs again – with a specific focus on first time buyers.
Virgin Money is one such provider, as they are once again offering 90% LTV mortgages for first time buyers, with the hope that this will get the market moving once again.
The idea is that this will coincide with the stamp duty holiday, allowing homeowners to sell up without the tax issue, and first time buyers to take advantage of these lower-cost homes.
For the vast majority of first time buyers, they will only have a deposit of 10% or 5%, meaning the return of high LTV mortgages is very much welcome for this demographic.
These new 90% LTV products are offered for properties up to £400,000.
The head of intermediaries at Virgin Money, Sarah Green, stated that,
“We recognise how challenging the last few months have been for all buyers, including those trying to get onto the property ladder…By offering longer term fixed rates along with the Home Buying Coach app, we are giving new borrowers an opportunity to lock their rate in for the medium to longer term, safe from immediate market fluctuations.”
The new products are available on purchases up to £400,000 with the following rates:
- 7 Year Fixed 90% LTV; £995 fee; 2.99% interest rate
- 7 Year Fixed 90% LTV; fee saver; 3.09% interest rate
- 10 Year Fixed 90% LTV; £995 fee; 3.09% interest rate
- 10 Year Fixed 90% LTV; fee saver; 3.19% interest rate
The Coaching App
In addition to the new 90% LTV mortgage product for first time buyers, Virgin Money have also introduced a new Coaching App, designed to give first time buyers a helping hand through the process of buying their very first home.
Titled the Home Buying Coach App, this offers in-app support including a general timeline, as well as a way to calculate how much you can afford based.
It also includes links to the mortgage products available to first time buyers with Virgin Money, to make the process of finding and applying for a mortgage as easy as possible.
Reverts to 4.34%
Reverts to 4.34%
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE