Virgin Money launches 15-year fixed rate mortgage
Virgin Money for Intermediaries has launched a 15-year fixed-rate mortgage.
It is priced at 2.55% and fixed until 1 November 2034. Once the rate expires, it reverts to the lender’s standard variable rate - currently 4.24%. The overall cost for comparison is 2.93% APRC representative.
Aaron Strutt, product director at Trinity Financial, says: “This 15-year fixed rate is thought to be the first of its kind on the market and at the moment the current longer-term fixes are capped at ten years.
“It is good to have another longer-term product but borrowers need to think very carefully before locking into this deal. 15-years is a very long time, particularly with eight per cent early repayment charges for the first five years.
“Applicants will be locked in for the whole duration of the deal and have to pay high fees to get out of it. If you are in the market for a longer-term mortgage, Coventry Building Society has a ten-year fix with five-years early repayment charges.”
Virgin’s rate has a £995 arrangement fee and applicants will need a 35% deposit to qualify.
Representative example: A mortgage of £250,000 payable over 25 years, initially on a fixed rate until 01/11/2034 at 2.55% and then on a variable rate of 4.74% for the remaining 10 years, would require 182 monthly repayments of £1,127.85 followed by 118 monthly repayments of £1,248.79. The total amount repayable would be £354,075.92 made up of the loan amount, plus interest (£102,625.92) and fees of £995. The overall cost for comparison is 2.93% APRC representative.
The actual rate available will depend on your circumstances. Please ask for a personalised mortgage illustration.
Call Trinity Financial on 020 7016 0790 to secure a longer-term fixed rate
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