Virgin Money has launched Fix and Switch, which offers a rate fixed for five years, but with the flexibility of being able to switch to another product with no early repayment charge after two years.

Fix and Switch is available exclusively via any intermediary registered with Virgin Money. The product is available for residential purchase customers at 85% and 90% LTV.

The options available at launch are:

• 5 Year Fixed, 2 Year Early Repayment Charge at 85% LTV Fee Saver at 5.14%
• ·5 Year Fixed, 2 Year Early Repayment Charge at 90% LTV Fee Saver at 5.27%

These fee-saver deals also offer customers a cashback incentive of £500. Customers will have their affordability assessment for Fix and Switch based on a five-year deal.

Craig Calder, head of secured lending at Virgin Money, said: “In today’s higher interest rate environment, many mortgage borrowers are looking for long-term payment certainty, but don’t want to be tied in for the long-term. Fix and Switch is the perfect solution for them, providing the certainty of a five-year fixed rate with the flexibility of a two-year ERC if rates begin to fall.”

David Hollingworth, associate director at L&C Mortgages, added: “The mortgage market has provided so many ups and downs in the last couple of years that it’s understandable that borrowers will be struggling to decide on the best approach.

“Virgin Money’s innovative product offers an alternative and welcome solution to those that feel there’s room for rates to improve over the next couple of years but don’t want to be caught out if the outlook shifts again. There will no doubt be customers attracted to the ongoing certainty of rate if required but with the flexibility to review in two years.”