Virgin Money has made a number of rate reductions on residential and buy-to-let mortgages.

A new cashback incentive has also been launched for purchase customers on selected two, three and five-year fixed rates.

Key changes to residential three-year fixed rates:

• Three-year fixed rate up to 70% LTV reduced to 1.79% (£995 product fee, £300 cashback for purchases)
• Three-year fixed rate up to 75% LTV reduced to 1.84% (£995 product fee, £300 cashback for purchases)
• Three-year fixed rate up to 80% LTV reduced to 1.89% (£995 product fee, £300 cashback for purchases)

Key changes to residential five-year fixed rates:

• Five-year fixed rate up to 65% LTV reduced to 2.18% (No product fee)
• Five-year fixed rate up to 85% LTV reduced to 3.19% (No product fee)
• Five-year fixed rate up to 95% LTV reduced to 4.19% (No product fee, £300 cashback for purchases)

Key changes to buy-to-let rates:

• Two-year fixed rate up to 70% LTV reduced to 2.09% (£1,995 product fee, £500 cashback)
• Five-year fixed rate up to 70% LTV reduced to 3.24% (£995 product fee, £500 cashback)
• Two-year tracker rate up to 75% LTV reduced to 2.29% (£995 product fee, £500 cashback)

Peter Rogerson, Virgin Money’s commercial director for mortgages, said: “The reductions we have made to our range ensure that we continue to offer attractive options for purchase and remortgage customers looking for residential and buy-to-let loans at a range of different deposit levels.

“We think these products will be well-received by the market which remains upbeat, as reflected in our recent poll of intermediaries where nearly 80% said they expect the mortgage market to grow in 2017.”