Six-year fixed rate arrives to protect against increases

Amid fears of an imminent rise in the Bank of England base rate, borrowers are scrambling to secure themselves a competitive fixed rate, with Virgin Money triggering a price war by releasing a prolonged fixed rate period of six years.

Available at the same rate as its five-year fixed offering, Virgin Money’s new customer encourager is available with a booking fee of £995 and a 30 percent deposit. Many of the high street lenders, including HSBC and Nationwide, have recently cut their fixed rates.

It is creating a competitive market as lenders wrestle for the best share of the business, and work to achieve their year-end targets. Following the Mortgage https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpget Review in April, the Financial Conduct Authority introduced additional regulation to ensure that borrowers are protected and are lent to in a responsible fashion.

Companies now have an increased interest in lending after taking the regulation changes on board, which has led to another window of opportunity for organisations like Virgin Money. Many may have under lent earlier in the year, and are now reducing rates to boost business. Others may have stored cash that was received under the Funding for Lending scheme, which was launched 2012 to increase competition by providing lenders with cheap options that they must in turn pass onto the borrower.

Professionals can obtain the necessary qualifications by attending and completing the appropriate CeMAP training, in Liverpool, Manchester and other cities across the country. This will enable them to lend responsibly within the specified regulation, and instil confidence in the borrower.



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