Virgin Money has made changes to its mortgage variable revert rates, following the announcement of an increase in the Bank of England base rate of 0.25 percentage points on 23 March and a further 0.25 percentage points on 11 May.
The changes are as follows:
Virgin Money
Residential Standard Variable Rate (SVR) will increase from 8.24% to 8.74%.
Loyalty rate, for qualifying residential customers who have held a mortgage on a property for seven years or more, will increase from 7.99% to 8.49%.
Buy to Let Variable Rate will increase from 8.44% to 8.94%.
The revised rates will take effect for existing customers from 1 July 2023, and for new customers from 6 June 2023.
Clydesdale and Yorkshire Bank
Residential SVR will increase from 8.24% to 8.74%.
Residential Offset Variable Rate will increase from 8.45% to 8.95%.
The Buy to Let revert rate, Offset Variable Investment Housing Loan Rate, will increase from 8.74% to 9.24%.
The revised rates will take effect for existing customers from their next payment date after 6 June 2023, and for new customers from 6 June 2023.
These mortgage rate changes follow the increases Virgin Money has made to a number of its savings rates for both new and existing customers. The interest rate on its linked saver accounts for the Virgin Money M Plus Account, Virgin Money Club M Account and Virgin Money M Account increased on 1 June by the full 0.50% combined increase in bank base rate across the March and May MPC meetings. Interest rates on these savings accounts increased from 2.52% AER to 3.03% AER variable on balances up to £25,000. For balances over £25,000 the rate increased to 2.52% AER.
In addition, the Easy Access Cash ISA Exclusive savings rate also increased on 1 June, from 3.00% AER (tax free) to 3.75% AER (tax free).
Virgin Money says the “vast majority” of its overall mortgage book is on a fixed rate product and so is unaffected by these rate changes. Including base rate tracker products, almost 95% of the mortgage book will not be impacted by the changes in mortgage variable revert rates.
