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Virgin Money raises IO rates for new loans

Virgin Money raises IO rates for new loans

Virgin Money raises IO rates, Reward Me Home Loan Virgin Money raises IO rates, Reward Me Home Loan
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The challenger brand has announced that it has increased the variable interest rates for owner-occupiers and investors taking out a new Reward Me Home Loan with interest-only repayments.

Effective from today (16 June), owner-occupiers borrowing between $75,000 and $499,999, with a loan-to-value ratio (LVR) of less or equal to 70 per cent, and making interest-only (IO) repayments on a new Reward Me Home Loan will pay 4.14 per cent per annum. This constitutes a 25 basis point increase.

A 25-basis point increase also applies to owner-occupier IO loans with the same LVRs for borrowings of between $500,000 and $749,000 (to 4.09 per cent), and for those borrowing more than $750,000 (to 4.04 per cent).

Investors taking out IO Reward Me Home Loans will, from today, be subject to the same level of rate hike.

Those borrowing between $75,000 and $499,999, with an LVR of less or equal to 80 per cent, will pay 4.44 per cent per annum, while investors with the same LVRs but paying between $500,000 and $749,999 will have repayments set at 4.39 per cent.

Investors borrowing more than $750,000 with an LVR of less or equal to 80 per cent will from today have repayments of 4.34 per cent per annum.

[Related: Lender launches frequent flyer offer for home loan customers]

Virgin Money raises IO rates for new loans
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Annie Kane

Annie Kane

Annie Kane is the editor of The Adviser magazine, Australia’s leading magazine for mortgage brokers. As well as writing news and features on the Australian mortgage market, financial regulation, fintechs and the wider lending market – Annie is also the host of the Elite Broker podcast and regulator contributor to the Mortgage Business Uncut podcast. 

Before joining The Adviser team at Momentum Media in 2016, Annie wrote for a range of business and consumer titles, including The Guardian (Australia), BBC Music Magazine, Elle (Australia), BBC Countryfile, BBC Homes & Antiques, and Resource magazine.

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