Virgin Money launches new co-ownership agreement

Virgin Money launched a new condominium mortgage, bought two products and cut rates.

The condominium mortgage is in the “Greener” category, which means properties must have an “A” or “B” energy performance certificate rating, and is available at 90% LTV over a five-year period. years at 2.40%. He charges a fee of £ 995.

Virgin Money also cut condominium rates to 95% LTV by 11 basis points.

Additionally, in the Exclusive Buy range, which comes with £ 1,000 cash back, the lender has added an 85% five-year LTV fix with a charge of £ 995 to 1.99% and an LTV fix of 90% over five years with a charge of £ 995 at 2.38%. .

And in the Core range, rate cuts of up to 14 basis points have taken place on certain rental products as well as rate cuts which include:

  • 90% two-year LTV fix with £ 995 fee has been reduced from 1.99% to 1.89%
  • The 95% two-year LTV “Fee Saver” has been reduced from 3.12% to 2.98%
  • Five-year LTV’s 95% “fee saver” saw its rate drop from 3.34% to 3.03%.

Virgin Money National Sales Director Richard Walker says, “Condominiums are a key part of the mortgage market and the changes we just announced demonstrate our commitment to buyers in this segment.

“The pandemic has led people to assess their situation and as a result we are seeing an increase in the number of clients looking to buy their own homes.

Recent research shows that the average price of a house in the UK has jumped to 8.8 times the average income. This is an increase from the previous record of 8.7 times reached in August 2007.

There has been a steady increase in house prices at the same time, but because the condo needs a smaller deposit, it offers a faster route for first-time buyers especially to get that important foot on the ladder. housing, so it is often a welcome alternative for younger buyers.

And Metro Finance CEO Jon Lord praises shared ownership as “” the most flexible and affordable home ownership product ever, with shares available from 10% to 75%. first day.

He continues, “The ability to adjust the share to meet affordability makes it extremely effective for a wide range of income and deposit sizes – the latter starting at just 5% of the share.

“Demand throughout 2021 has been extremely high, we expect this to continue in the years to come thanks in part to government and institutional funding. “

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