Virgin Money has launched a new product for first-time buyers available exclusively through mortgage intermediaries.

The two-year fix comes at 2.89 per cent, comes with a free valuation and includes a £1,999 fee.

As well as this, the lender is removing its 75% LTV two-year fixed rate with £1,999 and its two-year discount with an initial rate of 1.74 per cent from its line-up.

Virgin Money adds that its new 9% deal is not available for flats, maisonettes or new builds.

In a note to brokers, the lender adds that product fees can now be added to the loan as long as it doesn’t take the total loan over 95% LTV for residential and 80% LTV in the case of a buy-to-let mortgage.