Virgin Money has launched five-year fixed-rate home loans, with the flexibility of being able to switch to another product without early repayment charges after two years.    

Its Fix and Switch product, at 85% and 90% loan to value, is available exclusively through intermediaries registered with the lender.  

The product’s options are:  

• Five-year fixes, two-year early repayment charge at 85% LTV fee saver at 5.14%    
• Five-year fixes, two-year early repayment charge at 90% LTV fee saver at 5.27%  

The firm adds that its fee-saver deals also offer customers £500 cashback. Customers will have their affordability assessment for Fix and Switch based on a five-year deal. 

Virgin Money head of secured lending Craig Calder says: “In today’s higher interest rate environment, many mortgage borrowers are looking for long-term payment certainty, but don’t want to be tied in for the long-term.   

“Fix and Switch is the perfect solution for them, providing the certainty of a five-year fixed rate with the flexibility of a two-year early repayment charge if rates begin to fall.”    

John Charcol head of marketing Nicholas Mendes adds: “This latest deal from Virgin is certainly one for the records, lenders typically compete on price and criteria but this deal is a hybrid of both.  

“Fixed rates are expected to reduce over the next few years, but nothing is certain especially when we consider the global uncertainty.  

“Clients want stability, but tend to opt for a two-year fix “as no one wants to be tied into a higher rate for longer than necessary.  

Having a five-year fix with no early repayment charges after two years is a welcome move and another demonstration of how lenders are actively working in ways to attract new business.”