Following in the footsteps of Barclays’ new “green” mortgage, Virgin has announced a new range of fixed rate mortgages for new-build homes.
The introduction of the new products is a welcome move for both borrowers and building companies looking for more flexibility when it comes to purchasing a new-build property.
Virgin’s new range includes a two-year fixed rate at 2.19% and a three-year fixed rate option at 2.44%. It has also increased the maximum loan to value ratio on new-build mortgage products from 85% to 90%. Both fixed rate products offer £300 cashback and are available for a £995 product fee. In addition, a five-year fixed rate deal is available at 2.85%.
Andrew Asaam, director of mortgages at Virgin Money, said: “This range will provide a competitive option for clients considering a new-build property.”
New mortgage rates available for seven months
The lender also confirmed that the new-build mortgage offers will be valid for seven months, and borrowers will be able to benefit from an option to extend open offers for a further seven months where the construction of the property is not completed.
Existing mortgage products for a loan to value ration of 85% on new-build houses and 75% on flats are also still available for borrowers who are able to make a larger down payment.
The benefits of new-builds
As the government strives to reach its target of building 300,000 new homes every year for the next few years in order to combat the country’s housing crisis, mortgages such as these as well as the one from Barclays are a sign that lenders are adapting to the market changes as more people opt for new-builds. As well as the environmental benefits due to the higher energy efficiency levels of a new-build, which is something the “green mortgage” focuses on, buyers can gain many other advantages from investing in a new-build.
Aside from this, those who choose to invest in a new-build before it has been completed – off-plan – stand to make even greater gains in the long run as property prices increase before the home has even been lived in, and thus are a popular choice for investors.
