"The changes we’ve made solely affect our tracker deals and only reflect the reduced Bank of England Base Rate with no change to the tracker differential."
Over the past two weeks, Bank Rate has reduced from 0.75% to 0.1% in response to the economic pressure of the coronavirus outbreak.
Virgin Money customers whose mortgage rate is directly linked to the Bank of England Base Rate will see their monthly payment change on 1 May 2020 to reflect the combined 0.65% reduction.
In a statement, Virgin Money said: "The changes we’ve made solely affect our tracker deals and only reflect the reduced Bank of England Base Rate with no change to the tracker differential."
The lender says it is now reviewing the pricing of its broader product range, including its standard variable rate.
Virgin Money also set out its approach to the mortgage payment holiday, outlined by lenders and Government last week.
In a note to intermediaries, Virgin said that interest will continue to be charged during the payment holiday and that it will work with borrowers to agree the best way to repay any additional interest incurred and to make up any payments that have been deferred. Virgin Money says it will consider increasing payments over the remaining term or extending the overall term of the mortgage.
It stressed that its BDMs continue to be available for their brokers over the phone during the self isolation period, and that its processing teams and phone lines remain open.
