Virgin Money deals cuts to property investment borrowers

Adam Smith 19 December 2017 NEWS

dice percent1Non-bank lender Virgin Money has announced a raft of changes to its investment home loan rates.

The lender announced it would cut rates across a number of investment home loan products. The changes are set to come into effect from today, and affect Virgin Money’s 1-5 year fixed rate interest-only investment home loans, as well as its 4-year fixed rate principal and interest investment home loan.

Product Cut New rate
1 year interest-only -0.10% 4.39%
2 year interest-only -0.25% 4.14%
3 year interest-only -0.10% 4.29%
4 year interest-only -0.30% 4.29%
5 year interest-only -0.10% 4.59%
4 year principal and interest -0.15% 4.29%

The cut comes in spite of inaction by the Reserve Bank at its final meeting of the year. At its December cash rate meeting, the RBA Board chose to leave the official cash rate on hold at 1.50%. However, this hasn't stopped lenders from moving on rates independently of the Reserve Bank. Virgin Money becomes the fifth lender in the finder.com.au database to make an out-of-cycle rate change in the month of December.

Virgin Money also went against trend by lowering investor rates while other lenders have raised them in light of higher restrictions on investment and interest-only lending. NAB recently raised rates across its fixed rate investor products.

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