Virgin Money offers homebuyers a 15-year fixed rate mortgage for first time in a decade
- Borrowers with 35% deposit who sign up will be locked into rate of just 2.55%
- This is just 0.26 percentage points more expensive than cheapest ten-year deal
- The last time borrowers could sign up to a 15-year fixed deal was in 2009
Published: 01:49 BST, 1 August 2019 | Updated: 01:51 BST, 1 August 2019
Homebuyers can now take out a 15-year fixed rate mortgage for the first time in a decade.
Virgin Money has revealed it will allow borrowers to protect themselves against rising interest rates until 2034.
Borrowers with a 35 per cent deposit who sign up will be locked into an ultra-cheap rate of just 2.55 per cent.
This is just 0.26 percentage points more expensive than the cheapest ten-year deal and 1.71 percentage points higher than the top five-year fix.
Virgin Money has revealed it will allow borrowers to protect themselves against rising interest rates until 2034
The last time borrowers could sign up to a 15-year fixed deal was in 2009 when Britannia Building Society offered a rate of 6.49 per cent, according to analysts Moneyfacts.
Experts said the deal could appeal to those looking to protect their finances against rising interest rates.
Economists and the financial markets are at loggerheads over whether the Bank of England will move to raise or cut interest rates.
Analysts at economic forecasting firm EY Item Club predict the Bank base rate will remain at 0.75 per cent for the rest of the year and rise to 1 per cent around mid-2020.
Traders, on the other hand, think there is a 50 per cent chance the base rate will fall before the end of the year.
Borrowers who want to exit the 15-year Virgin Money deal in the first five years will be charged a penalty of 8 per cent of their outstanding balance.