Virgin Money is bringing back its service guarantee whereby it promises to issue a mortgage offer within 10-days of receiving a completed application or it will pay £100 to the client.

However, the lender is also increasing rates on a number of high LTV deals.

The £100 offer will be reinstated from Monday and also applies to applications submitted to Clydesdale.

The lender temporarily withdrew the offer in order to “focus resource on providing crucial services to customers during the current pandemic”.

However, Virgin has also given brokers notice that it is increasing rates on a number of high LTV deals with current rates available until 8pm this evening.

Selected 85 per cent LTV fixed rates will be increased by up to 20 basis points 

In its shared ownership range, selected 90 per cent LTV rates will increase by up to 29 basis points. 

The rate increases may be seen by brokers as a way for the lender to manage volumes in a bid to keep to its reinstated 10-day promise.

Head of intermediary mortgages Sarah Green says: “The outbreak of the Covid pandemic caused issues which the mortgage market, as well as the wider financial market, had never previously experienced, leading to a temporary pause in the service commitment we offer to intermediaries. 

“I am delighted to announce that as from Monday we are reinstating the service commitment, which is an important signal to intermediaries and mortgage customers that we’re back to full service with our reliable, prompt and high-quality proposition.”