Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Virgin Money raises IO rates by up to 50 bps

virgin money loan  virgin money loan
Lucy Dean 4 minute read

Virgin Money is the latest to join the ranks of lenders raising rates on interest-only loans, increasing fixed rates by up to 50 basis points.

Effective 8 August, fixed interest-only (IO) rates will be raised by between 0.15 per cent per annum (p.a.) and 0.50 per cent p.a. for both owner-occupied and investment loans.  

New investor clients (with loan-to-value ratios of 80 per cent and lower) with one, two and three-year terms will see rates start from 4.49 per cent, following increases of 0.15 per cent for one-year terms, 0.44 basis points for two-year terms and 0.35 per cent for three-year terms.

Investor clients opting for four-year terms will see rates of 4.89 per cent p.a., while five-year terms will grow by 40 basis points to 4.99 per cent.


Meanwhile, owner-occupiers with LVRs of 70 per cent will have a rate of 4.39 per cent p.a., reflecting hikes of 0.15 per cent for one-year terms and 0.40 per cent for two-year terms.

Owner-occupier loans on three-year terms will see rates increase by 0.50 per cent to 4.49 per cent p.a., while four-year terms will have a new rate of 4.69 per cent as a result of a 35 basis point increase. Five-year terms will see rates grow by 0.30 per cent to 4.79 per cent p.a.

The lender added that, as of the same date, it will not accept rate lock for pre-approval applications or off-the-plan purchases.

Virgin Money is also introducing changes to standard variable rates on 8 August, as announced in early July.

[Related: Virgin Money hikes IO and high LVR rates]


Virgin Money raises IO rates by up to 50 bps
virgin money loan
TheAdviser logo

Are you a new-to-industry broker in the process of growing your business? Then there’s some great news: The Adviser’s New Broker Academy is back in 2021 and will provide you with essential insights into cutting-edge tools, strategies and processes to fast-track to success. Don’t miss your chance to attend. To secure your FREE place, visit newbroker.com.au now!

virgin money loan


more from the adviser
handshake 2

Breaking News

Former Westpac head of third party to lead BOQ business bank

The non-major bank has announced the appointment of a former West...


Breaking News

Climate change threatens property values: RBA

A number of regions could see a material decline in housing price...

empty wallet

Breaking News

22% of investors say they’re unable to refinance

A fifth of investors are unable to refinance at an amount they w...