Virgin Money has announced multiple rate reductions on its new fixed rate investment products.
This reflects easing on funding rates (now future expectations of higher rates have eased) and competitive pressure for share of lending. Expect more banks to follow. Existing borrowers are still paying the higher amount of course.
The changes, which come into effect tomorrow (19 December), will decrease rates on the 1-5 year fixed rate interest only investment products and the 4 year fixed rate principal and interest product.Changes are as follows:
Term Current rate (p.a.) New rate (p.a.) Change Investment – Fixed interest only 1 year 4.49% 4.39% -0.10% 2 year 4.39% 4.14% -0.25% 3 year 4.39% 4.29% -0.10% 4 year 4.59% 4.29% -0.30% 5 year 4.69% 4.59% -0.10% Investment – Fixed principal and interest 4 year 4.44% 4.29% -0.15%
