"This latest rate cut from Virgin is a further indicator that we are now seeing the start of a price war, both in the residential and buy-to-let markets"
Virgin Money has reduced rates across its mortgage range and has launched new residential and buy-to-let remortgage exclusives.
The new remortgage exclusive deals will be available for 7 days, until 8pm on Thursday 17th August.
Two-year fixed rate remortgage exclusives start from 5.99% at 65% LTV and 6.10% at 80% LTV, while five-year fixes start from 5.44% at 65% LTV and 5.60% at 80% LTV.
All 7 day exclusives come with a £1,495 fee and £750 cashback.
New buy-to-let remortgage exclusives include a 70% LTV two-year fixed rate at 5.88%. Five-year fixed rates start from 5.32% at 50% LTV, 5.37% at 60% LTV, and 5.52% at 70% LTV.
All buy-to-let remortgage specials come with a £2,195 fee, free valuation and free legals.
In addition, existing two-year fixed rate buy-to-let products have reduced by up to 0.14%, now starting from 5.76% at 50% LTV and 5.85% at 60% LTV with a £2,195 fee.
All purchase exclusive fixed rates with a £1,295 fee will be reduced by up to 0.16%, starting from 5.23%, and selected product transfer rates at 65% - 85% LTV will be reduced by up to 0.11%, starting from 5.52%.
Clydesdale Bank, which merged with Virgin Money in 2018, has also announced rate cuts across its residential mortgage range.
Exclusive 90% LTV purchase deals have reduced by up to 0.10%, with a two-year fixed rate now starting from 6.14% and a five-year fix from 5.65%. These deals are available for loan sizes between £300,000 and £600,000.
65% and 75% LTV large loan deals - available for loan sizes between £1m and £2m - have been cut by up to 0.10%, starting from 5.60%.
Elsewhere in the range, selected 65% and 75% LTV residential two and five-year fixed rates have reduced by up to 0.10% and professional products at 85% and 90% LTV have reduced by between 20-25bps, now starting at 5.90%.
Ben Tadd, director at Lucra Mortgages, commented: "This latest rate cut from Virgin is a further indicator that we are now seeing the start of a price war, both in the residential and buy-to-let markets, and it will be very welcome news for those homeowners and landlords due to remortgage in the next 6-12 months. Although not quite market-leading, the new rates are very competitive versus the majority of other products currently available, and will only help to provide further impetus for other lenders to follow suit and slash their rates to grab their slice of market share, too."
Gary Boakes, director at Verve Financial, added: "Great news short term, and what I believe will be a sign of things to come over the next three months. Lenders will be looking to win quick bulk business with market-leading rates. This is great if you are lucky to be remortgaging this week, but long term this is not what the market needs. We need the market to be stable, all the increasing and decreasing every 5 minutes means that purchases hold on and don't commit. We have seen from the first half of the year that higher rates don't put off purchasers when the rates and market are more stable."