Virgin Money has launched new higher LTV residential rates which come with a £1,000 cashback.

The lender has also made improvements to its shared ownership range.

The details are as follows:

Purchase Exclusives with £1,000 cashback:

• New 85% LTV 5 Year Fixed Rate with £995 fee at 1.99%.
• New90% LTV 5 Year Fixed Rate with £995 fee at 2.38%.
• 90% LTV 2 Year Fixed Rate with £995 fee will be reduced to 1.89%.

Core:

• 95% LTV 2 Year Fixed Rate fee-saver will be reduced to 2.98%.
• 95% LTV 5 Year Fixed Rate fee-saver will be reduced to 3.03%.
• Selected 85-90% LTV fixed rates will be reduced by up to 0.32 percentage points.
• Selected BTL fixed rates will be reduced by up to 0.14 percentage points.

Shared Ownership:

• NewGreener 90% LTV 5 Year Fixed Rate with £995 fee at 2.40%.
• 5 year fixed rates will start from 2.10%.
• 95% LTV fixed rates will be reduced by 0.11 percentage points.

Richard Walker (pictured), Virgin Money’s national sales manager, said: “shared ownership is a key part of the mortgage market and the changes we’ve just announced show our commitment to buyers in this segment.

“The pandemic has led to people evaluating their circumstances and we’re seeing an increase in customers looking to buy their own home as a result. Recent research shows that the average price of a house in the UK surged to 8.8 times the average income. This was up from a previous high of 8.7 times in August 2007.

“There’s been a steady rise in house prices at the same time but because shared ownership needs a smaller deposit, it offers a quicker route for first time buyers in particular to get that all important foot on the housing ladder so it’s often a welcome alternative for younger buyers.”