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 0.25% on 23 March and a further 0.25% on 11 May.
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 1 June by the full 0.50% combined increase in bank base rate across the March and May MPC meetings. Interest rates on these savings accounts increased from 2.52% AER to 3.03% AER variable on balances up to £25,000. For balances over £25,000 the rate increased to 2.52% AER.
In addition, the Easy Access Cash ISA Exclusive savings rate also increased on 1 June, from 3.00% AER (tax free) to 3.75% AER (tax free).
- Residential Standard Variable Rate (SVR) will increase from 8.24% to 8.74%.
- Loyalty rate, for qualifying residential customers who have held a mortgage on a property for seven years or more, will increase from 7.99% to 8.49%.
- Buy to Let Variable Rate will increase from 8.44% to 8.94%.
- The revised rates will take effect for existing customers from 1 July 2023, and for new customers from 6 June 2023.
Clydesdale and Yorkshire Bank
- Residential SVR will increase from 8.24% to 8.74%.
- Residential Offset Variable Rate will increase from 8.45% to 8.95%.
- The Buy to Let revert rate, Offset Variable Investment Housing Loan Rate, will increase from 8.74% to 9.24%.
- The revised rates will take effect for existing customers from their next payment date after 6 June 2023, and for new customers from 6 June 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.