Virgin Money has relaunched 95% loan-to-value products, and now offers a range of five-year fixes at under 4%.  

The bank debuts a 95% LTV five-year fixed-rate fee-saver at 5.09%.   

And a 95% LTV 10-year fixed-rate fee-saver at 5.59%, available to purchase customers only.  

The lender also announces a range of exclusive rates and new deals, available from 3.95%.   

This includes exclusive purchase deals with a free valuation, such as:  

• 65-90% LTV five-year fixed-rates deals, with a £1,495 fee is reduced by up to 18 basis points, available from 3.99%.
• 75-90% LTV five-year fixed rates with £995 fee and £1,000 cashback will be reduced by up to 12bps, available from 4.22%.

Also, exclusive remortgage deals with cashback include:  

• 65-75% LTV two-, three- and five-year fixed-rate fee-savers are down by up to 51bps, available from 4.10%.
• Buy-to-let 50-60% LTV two-and five-year fixed-rate loans, with a £3,995 fee cut by up to 46bps, available from 4.54%.

The firm’s product transfer offers include:   

• 65% LTV five-year fixed-rate deals, with a £995 fee reduced by 15bps to 4.15%.
• 65% LTV five-year fixed-rate fee-saver down by 19bps to 4.27%.

Virgin Money head of intermediary sales Richard Walker says: “Many borrowers, including first-time buyers, are looking for a longer-term product which guarantees a fixed rate and a consistent payment for the term of the product.   

“These new five and 10-year fixed rates at 95% LTV offer exactly that, and mean more aspiring homeowners can get their foot on the housing ladder and get the keys to their first property.   

“We’ve also refreshed our range of intermediary exclusives, including competitive five-year fixed rates starting from 3.95%, as we continue to support many types of customers with their mortgage needs.”  

The move comes a day after HSBC reintroduced a five-year 60% loan-to-value remortgage at under 4.00% for the first time since last September.    

These lower lender prices come in the aftermath of late September’s tax-cutting mini-Budget by then Chancellor Kwasi Kwarteng, which unsettled markets and lifted prices.   

These cuts were largely reversed by current Chancellor Jeremy Hunt in October and his November Autumn Statement, although loan prices have remained elevated.  

Lodestone Mortgages & Protection director Craig Fish says: “This rate war just keeps on giving. When HSBC announced its market-leading five-year fixed rate on Tuesday we all knew it wouldn’t be long before another lender would enter the ring and Virgin stepped up.   

“Crucially, the offer from Virgin goes not one but two steps further. Not only does their remortgage rate beat HSBC in terms of rate and fee it also offers cashback, and better still they have a sub 4% offering for people purchasing who are lucky enough to have a 40% deposit.   

“Admittedly these products are still only available to those with a chunk of equity or cash, but it’s all heading in the right direction.

“I believe that by the spring, the market is going to be alive with great offers ‘springing’ up like daffodils, so those mortgaging now should, subject to circumstances, hold off on fixing as better rates almost certainly lie ahead.”  

But Shaw Financial Services founder Lewis Shaw adds: “This is to grab headlines and nothing more.   

“This type of lending isn’t sustainable and will lead to a flurry of unnecessary activity, poor service levels and mismanaged expectations.   

“Moreover, given it’s nailed on that rates will fall towards the end of the year and throughout 2024, anyone jumping into a five-year fixed rate now, unless they’ve got a small balance and a short term left, will likely rue the day they listened to the hype.”