Another lender has repriced their back book, citing higher funding costs. “We have absorbed higher funding costs for the last twelve months in order to delay the impact for our home loan customers. Unfortunately, funding costs remain high and are likely to remain elevated into the foreseeable future.” It’s connected with the Bank of Queensland, who already lifted, of course.
As a result, Virgin Money has announced changes to its variable rates for all existing principal and interest (P&I) and interest only (IO) home loans, increasing rates by 20 basis points (bps).
However, the majority of standard variable rates for new home loan applications will remain unchanged, with only a few set to increase.
They also announced small reductions of between 5bps and 10bps for some new fixed rates products with an LVR below 90%.
So once again loyalty is NOT being rewarded.
The interest rate changes are effective Friday, 11 January 2019.
Expect more lenders to follow.
Remember that Virgin Money is just a sub brand of BOQ which put up their back book on Monday this week, so this not really “another” lender, it’s just BOQ being consistent.
Thanks, good point, I clarified this in the post…