Virgin Money announces Help To Buy Mortgage rates but fails to better HSBC deals

This morning challenger bank Virgin Money announced details of it’s new Help to Buy mortgage range as mentioned in the Chancellor’s Autumn Statement last week.

The rates of 5.29% for 2 years and 5.49% for 5 years both with no product fee are competitive but fail to match the lowest priced H2B mortgages from HSBC. There’s a 3 year option too at 5.39% – again with no product fee.

With Aldermore Bank due to launch it’s H2B range on 16th December the desire to win new First Time Buyer custom is starting to gather pace and hopefully this increased competition will eventually see rates edge even lower.

Away from the official Help to Buy products, it’s worth pointing out that Yorkshire Building Society is offering a wide range of 5% deposit mortgages, some at a lower rate than those mentioned in the comparison table below.

LenderRateFixed rate termFee£150,000 Property
(£142,500 Mortgage)

MONTHLY COST
£150,000 Property
(£142,500 Mortgage)

Cost over term of fix
£200,000 Property
(£190,000 Mortgage)

MONTHLY COST
£200,000 Property
(£190,000 Mortgage)

Cost over term of fix
HSBC4.79%2 Years£99£816£19683£1088£26211
NatWest4.99%2 Years£0£833£19992£1110£26640
Virgin Money5.29%2 Years£0£858£20592£1144£27456
Halifax5.19%2 Years£995£849£21371£1132£28163
Halifax5.59%2 Years£0£883£21192£1178£28272
Virgin Money5.39%3 Years£0£866£31176£115541580
HSBC4.99%5 Years£99£833£50079£1110£66699
Virgin Money5.49%5 Years£0£875£52500£1166£69960
NatWest5.49%5 Years£0£875£52500£1166£69960
All figures based on a mortgage term of 25 years

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