Virgin Money has increased its mortgage rates following the Autumn Budget.
Virgin Money said it would be increasing its mortgage rates by up to 0.15 per cent.
Yellow Brick Mortgages managing director, Stephen Perkins, pointed out these increases were announced “within hours of the Budget”.
He argued this shows that the rate dust has not yet settled following Labour’s shake of the fiscal snow globe.
Perkins predicted that swap rates over the coming days “should reveal the direction of travel ahead of the Bank of England base rate decision next week”.
A similar sentiment was shared by EHF Mortgages managing director, Justin Moy, who said: “We now need to see whether this becomes a trend, or is just some poor timing by Virgin.
“For many borrowers this will be just another layer of disappointment.”
Additionally, VIBE Finance director and specialist broker, Kim McGinley, said: “Virgin Money’s decision to raise rates right after the Budget announcement feels like ill timing, particularly when many are watching closely for economic stability signals.
“At this point, it’s too early to say if this move will spark a broader industry shift or simply reflect Virgin’s own strategic response.
“Mortgage holders and those looking to borrow will be keen to see whether other lenders follow suit. But for now, patience is key; it’s important to observe how the market reacts and whether this adjustment becomes a trend or remains an isolated decision.”
Meanwhile, Exemplar Financial Services director, Iain Swatton, described Virgin’s decision as “intriguing”, and pointed out that other lenders are likely to adjust their own rates as they “digest the Budget’s impact”.
“Notably, Virgin also raised their buy-to-let rates, though the extra stamp duty on second properties already adds a significant burden for landlords.
“At this stage, there are more questions than answers. Whether rates will trend up or down remains to be seen."
Thanks to the Newspage community for sharing their thoughts with FTAdviser.
tom.dunstan@ft.com
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