Virgin Money’s introduction of percentage fees on their new fixed rate mortgage deals is grabbing attention in the mortgage space, signaling a trend towards offsetting mortgage interest to fees.

In a move that has caught the attention of brokers and borrowers alike, Virgin Money has announced a new set of fixed rate mortgage deals, including a 2-year fixed rate product at 5.09% up to 60% loan-to-value (LTV), with a 1% fee. While the interest rate itself is noteworthy, it is the introduction of percentage fees rather than flat product fees that has generated interest.

Brokers have compared Virgin Money’s approach to that of Skipton, suggesting that the lender is trying something different to attract more business in a market with stagnant rates. Ranald Mitchell, director at Charwin Private Clients, believes that the offsetting of mortgage interest to fees is becoming more prevalent in the mortgage space. This shift towards percentage fees could potentially benefit certain borrowers, depending on their individual circumstances.

Justin Moy, managing director at EHF Mortgages, sees the rate reductions as good news for borrowers, as market competition continues to push rates downwards. He highlights the 2-year fixed rate deal at 5.09% with a 1% fee as particularly interesting, suggesting that it may be a sign of sub-5% short-term deals in the near future. Moy also emphasizes the importance of product innovation from lenders, which can only be encouraged.

Elliott Culley, director at Switch Mortgage Finance, notes that Virgin Money is taking a leaf out of Skipton’s book by charging a percentage fee. He sees this as an attempt to attract more business in a market with limited rate movement. From a broker’s perspective, Culley appreciates having more options for customers, as each situation is unique.

Stephen Perkins, managing director at Yellow Brick Mortgages, acknowledges the appeal of 2-year fixed rates edging closer to the sub-5% range. However, he believes that the 1% product fee on a 2-year deal may not be cost-effective for most borrowers. Nonetheless, Perkins recognizes that low rates will attract some borrowers, as Virgin Money aims to gain market share and meet its year-end lending figures.

Overall, Virgin Money’s introduction of percentage fees on their fixed rate mortgage deals has sparked interest and discussion among brokers and borrowers. While the 2-year fixed rate deal at 5.09% with a 1% fee may not be suitable for everyone, it represents a trend towards offsetting mortgage interest to fees. As rates continue to edge downwards due to market competition, borrowers can expect more product innovation from lenders in the future.

Brokers and borrowers intrigued by Virgin Money’s introduction of percentage fees on fixed rate mortgage deals

In the mortgage space, Virgin Money’s recent announcement of a new set of fixed rate mortgage deals has generated interest and discussion. While the interest rates offered are noteworthy, it is the introduction of percentage fees that has caught the attention of brokers and borrowers. This move is seen as a departure from the traditional flat product fees and reflects a trend towards offsetting mortgage interest to fees.

Ranald Mitchell, director at Charwin Private Clients, believes that the introduction of percentage fees is a positive development. He sees it as a way for borrowers to benefit from rate reductions, depending on their individual circumstances. Mitchell suggests that the offsetting of mortgage interest to fees is becoming more common in the mortgage space.

Justin Moy, managing director at EHF Mortgages, views the rate reductions offered by Virgin Money as good news for borrowers. He highlights the 2-year fixed rate deal at 5.09% with a 1% fee as particularly interesting. Moy suggests that this deal may be a sign of sub-5% short-term deals in the near future. He also emphasizes the importance of lenders’ product innovation in a competitive market.

Elliott Culley, director at Switch Mortgage Finance, sees Virgin Money’s move as an attempt to attract more business in a market with stagnant rates. He compares it to Skipton’s strategy of charging a percentage fee. Culley believes that having more options for customers is beneficial, as each borrower’s situation is unique.

Stephen Perkins, managing director at Yellow Brick Mortgages, acknowledges the appeal of 2-year fixed rates approaching the sub-5% range. However, he questions the cost-effectiveness of the 1% product fee on a 2-year deal for most borrowers. Perkins recognizes that low rates will attract some borrowers, as Virgin Money strives to increase its market share and meet year-end lending targets.

In conclusion, Virgin Money’s introduction of percentage fees on their fixed rate mortgage deals has sparked interest and discussion in the mortgage space. While the 2-year fixed rate deal at 5.09% with a 1% fee may not be suitable for all borrowers, it represents a trend towards offsetting mortgage interest to fees. As market competition continues to push rates downwards, borrowers can expect more product innovation from lenders in the future.