Virgin Money cuts fixed rates by up to 70bps

Virgin Money has announced new fixed rates across a range of its owner-occupied and investment home loan products.

Effective 16 August, the new reduced fixed rates on owner-occupied, principal and interest (P&I) loans of $300,000 or more, with a loan-to-value ratio of up to 90 per cent are:

• 3.99 per cent p.a. for one year, down 25 basis points (3.58 per cent p.a. comparison)
• 3.54 per cent p.a. for two years, down 45 basis points (3.55 per cent p.a. comparison)
• 3.99 per cent p.a. for four years, down 35 basis points (3.72 per cent p.a. comparison)
• 3.79 per cent p.a. for five years, down 70 basis points (3.69 per cent p.a. comparison)

Rate reductions have also been applied to fixed rates on owner-occupied, P&I loans with an LVR over 90 per cent. The new rates are:

• 4.19 per cent p.a. for one year, down 25 basis points (4.73 per cent p.a. comparison)
• 3.94 per cent p.a. for two years, down 45 basis points (4.64 per cent p.a. comparison)
• 4.19 per cent p.a. for four years, down 35 basis points (4.62 per cent p.a. comparison)
• 3.99 per cent p.a. for five years, down 70 basis points (4.51 per cent p.a. comparison)

The revised fixed rates on investment, P&I loans of $300,000 or more, with an LVR of up to 90 per cent are:

• 3.99 per cent p.a. for one year, down 35 basis points (3.86 per cent p.a. comparison)
• 3.70 per cent p.a. for two years, down 35 basis points (3.83 per cent p.a. comparison)
• 3.84 per cent p.a. for three years, down 30 basis points (3.87 per cent p.a. comparison)
• 3.59 per cent p.a. for five years, down 60 basis points (3.79 per cent p.a. comparison)

For interest-only investment loans with an LVR of up to 90 per cent, the new fixed rates are:

• 3.99 per cent p.a. for one year, down 40 basis points (3.81 per cent p.a. comparison)
• 3.94 per cent p.a. for two years, down 15 basis points (3.83 per cent p.a. comparison)
• 4.09 per cent p.a. for three years, down 10 basis points (3.90 per cent p.a. comparison)
• 3.79 per cent p.a. for five years, down 50 basis points (3.84 per cent p.a. comparison)

Virgin Money is among a long line of lenders to drop their rates after the Reserve Bank of Australia cut the official cash rate to the historic low of 1 per cent. 

[Related: ME Bank lowers fixed rates by 40 bps]

Tas Bindi is the features editor on the mortgage titles and writes about the mortgage industry, macroeconomics, fintech, financial regulation, and market trends.  

Prior to joining Momentum Media, Tas wrote for business and technology titles such as ZDNet, TechRepublic, Startup Daily, and Dynamic Business. 

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