Virgin Money has confirmed changes to its mortgage variable revert rates, following the announcement of an increase in the Bank of England base rate of 0.50% on 22 June.
These mortgage rate changes follow the increases Virgin Money has made to a number of its savings rates for both new and existing customers. The interest rate on its popular linked saver accounts for the Virgin Money M Plus Account, Virgin Money Club M Account and Virgin Money M Account increased on 20 July by 0.52%. Interest rates on these savings accounts increased from 3.03% AER to 3.55% AER variable on balances up to £25,000. For balances over £25,000 the rate remained 2.52% AER.
In addition, the Easy Access Cash ISA Exclusive savings rate also increased on 20 July, from 3.75% AER (tax free) to 4.25% AER (tax free).
- Residential Standard Variable Rate (SVR) will increase from 8.74% to 9.24%.
- Loyalty rate, for qualifying residential customers who have held a mortgage on a property for seven years or more, will increase from 8.49% to 8.99%.
- Buy to Let Variable Rate will increase from 8.94% to 9.44%.
- The revised rates will take effect for existing customers from 1 September 2023, and for new customers from 3 August 2023.
Clydesdale and Yorkshire Bank
- Residential SVR will increase from 8.74% to 9.24%.
- Residential Offset Variable Rate will increase from 8.95% to 9.45%.
- The Buy to Let revert rate, Offset Variable Investment Housing Loan Rate, will increase from 9.24% to 9.74%.
- The revised rates will take effect for existing customers from their next payment date after 3 August 2023, and for new customers from 3 August 2023.
The vast majority of Virgin Money’s overall mortgage book is on a fixed rate product and so is unaffected by these rate changes. Including base rate tracker products, almost 95% of the mortgage book will not be impacted by the changes in mortgage variable revert rates.