The high street lender will also cut rates on other remortgage and purchase exclusives, as well as switching products by as much as 25 basis points.

The firm’s reductions cover:

Remortgage exclusives – seven-day specials

• 60% loan to value five-year fixes, with a £995 fee will be cut by 25bps to 4.90%
• 70% LTV five-year fixes, with a £995 fee will be reduced by 25bps to 4.95%

The firm’s seven-day specials are available until 8pm on 10 October.

Remortgage exclusives

• 60% LTV five-year fixes, with a £995 fee and £1,500 cashback will be reduced by 29bps to 5.09%
• 70% LTV five-year fixes, with a £995 fee and £1,500 cashback will be reduced by 24bps to 5.14%

Purchase exclusives

• 65% LTV two-year fixes, with a fee saver option will be reduced by 14bps to 5.60%
• 85% LTV two-year fixes, with a fee saver option will be reduced by 12bps to 5.99%
• 90% LTV two-year fixes, with a £1,295 fee will be reduced by 10bps to 5.75%

Product transfers

• Selected fixed-rate offers will be reduced by up to 11bps, starting from 5.12%

John Charcol mortgage technical manager Nicholas Mendes says: “It’s been a while since we’ve seen a temporary rates fire sale, but these latest rates from Virgin at 4.90% on five-year fixes will put it as a market leading remortgage rate albeit for seven days. 

“This doesn’t include rates for existing clients through a product transfer or a further advance.

“Mortgage holds have seven days to secure a rate before these are pulled from the market, and I suspect if Virgin receive more applicants than they anticipated, this could be cut shorter.”