Virgin Money boosted the supply of low-deposit mortgages as it became the latest lender to join the Government’s extended Help To Buy scheme.
The Edinburgh-based company said the products will be available from today, having brought forward their launch from early next year.
The Help To Buy scheme, which offers government-backed guarantees to those hoping to get on the property ladder with deposits as low as 5%, is currently being used by Lloyds Banking Group, Royal Bank of Scotland and HSBC.
Chancellor George Osborne announced last week that Virgin Money and challenger bank Aldermore were set to become the latest participants of the scheme. A number of other banks including Barclays and Santander have also announced their intention to take part.
Virgin’s two-year fixed rates are available at 5.29% with a 95% loan-to-value (LTV) and 4.29% at 90% LTV. Three year fixed rates are available at 5.39% for 95% LTV and 4.69% for 90% LTV. There are no product fees and customers are able to claim £300 cashback.
Financial services director Anthony Mooney said: “Joining the Help To Buy mortgage guarantee scheme today, several weeks ahead of our original plans, further strengthens our commitment to consumers in this under-served part of the market. It is encouraging to see that the scheme has got off to a strong start, and we are pleased to be widening the choice of products available to those looking to get on to or move up the housing ladder.”
Virgin Money’s total lending to UK households increased by £870m during the third quarter of this year, according to recent Bank of England figures.