Virgin Money Fix and Switch Mortgage
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At YesCanDo Money, we understand this balance is crucial for our clients. That’s why we’re excited to showcase Virgin Money’s Fix and Switch mortgage – a unique solution in today’s market. With a five-year fixed rate for peace of mind and a two-year ERC period for flexibility, it’s designed for those who want to keep their options open. As a fee-free mortgage broker, we’re here to guide you through the benefits of this innovative product, ensuring you make the best choice for your financial future.
What is Fix and Switch?
Fix and Switch is a groundbreaking mortgage product from Virgin Money, designed for those who seek stability in their financial planning without sacrificing flexibility. Unique in the market, it offers the best of both worlds: the certainty of a five-year fixed rate coupled with the adaptability of a two-year Early Repayment Charge (ERC) period.
The Best of Both Worlds: Fix for 5 years, Flex after 2
This innovative mortgage solution addresses one of the most common concerns among homeowners and buyers today: how to protect themselves against rising rates while retaining the option to switch if circumstances change. Here’s how Fix and Switch stands out:
Security: Lock in a competitive fixed rate for five years. This ensures your monthly payments remain consistent, providing a shield against potential mortgage interest rate increases.
Flexibility: Unlike traditional fixed-rate mortgages, Fix and Switch includes a ERC period of just 2 years. This unique feature means that after the first two years, you have the option to switch to a different deal without facing any penalties. It’s an ideal choice for those who value the reassurance of a fixed rate but don’t want to be tied down for an extended period.
Whether you’re navigating the complexities of buying a new home, looking to remortgage, or securing your financial future, Fix and Switch offers a tailored solution that doesn’t force you to choose between long-term security and short-term flexibility.
By choosing a Virgin Money mortgage Fix and Switch through YesCanDo Money, you’re not just getting a mortgage; you’re equipping yourself with a financial strategy that adapts to your life’s changes. Explore this unique mortgage with us, and take a step towards a more secure, flexible financial future.
Choosing between a 2 or 5 Year Fixed Mortgage: The Best Choice for You
Theoretical Real-Life Example: Fix and Switch Mortgage
Features and Benefits of Virgin Moneys Fix and Switch Mortgage
Virgin Money’s Fix and Switch mortgage is designed to offer the ultimate combination of security and flexibility in today’s fluctuating market. Exclusively available through intermediaries, it caters to clients seeking the predictability of a fixed rate with the option to adapt as circumstances change. Here’s what makes Fix and Switch a standout choice:
Key Features of Fix and Switch:
Fixed Rate Period: Clients enjoy the stability of a 5-year fixed rate, ensuring consistent monthly payments without the worry of rising mortgage interest rates.
Early Repayment Charge (ERC): Uniquely, the ERC is only applicable within the first two years and is set at a modest 1.5%. This feature distinguishes Fix and Switch by offering an escape route should clients wish to switch after two years, without the financial burden typically associated with early mortgage changes.
Cashback Incentive: A £500 cashback is offered to clients upon securing this mortgage, providing an immediate financial benefit and offsetting some upfront costs.
Fix and Switch Loan to Value and Interest Rates:
85% LTV at a 5.14% rate with the Fee Saver Option, ideal for clients seeking higher LTVs without additional fees.
90% LTV at a 5.27% rate with the Fee Saver Option, extending affordability to those with smaller deposits, again without the burden of extra charges.
Benefits of Fix and Switch
Unique Market Position: No other product in the market offers a five-year fixed rate with the flexibility of a two-year ERC period.
Client-Centric Benefits: It caters to clients who might be hesitant to lock in for a long period, offering them peace of mind and the option to reassess their mortgage deal in a relatively short timeframe.
Financial Incentives: The cashback offer enhances the attractiveness of the mortgage, providing tangible upfront value to your clients.
What is Fee-Saver Option?
Virgin Money’s Fee-Saver Option is specifically designed to reduce or eliminate the upfront costs that borrowers face when taking out a mortgage. This feature is part of Virgin Money’s commitment to making mortgages more accessible and cost-effective for a wide range of borrowers, from first-time buyers to those looking to remortgage. Here’s how it breaks down:
No Product Fees: This is a cornerstone of the Fee-Saver Option, removing the product fee that is typically charged on a new deal on their mortgage. Depending on the product and mortgage rates, this could save borrowers from paying hundreds to thousands of pounds upfront.
Cashback Offers: To further assist borrowers with their initial costs, Virgin Money’s Fee-Saver mortgages often come with cashback incentives. This means borrowers receive a lump sum upon completion, which can be used towards moving costs, home improvements, or simply to bolster their finances.
Contributions to Legal Fees: For certain products, particularly remortgages, Virgin Money may offer to contribute towards the borrower’s legal fees, or even cover them entirely, providing significant savings.
Free Valuation: A key part of the mortgage application process involves valuing the property. With the Fee-Saver Option, Virgin Money often covers this cost, saving the borrower from another potential expense.
Simplified Affordability Assessment
When considering a mortgage, one critical step for customers is passing the affordability assessment. Virgin Money’s Fix and Switch mortgage introduces a streamlined approach to this process, designed to benefit both intermediaries and their clients. Here’s how it enhances the customer experience:
Understanding the Assessment
The affordability assessment for the Fix and Switch mortgage is engineered to be both comprehensive and customer-friendly. Unlike traditional assessments that may require extensive financial forecasting and stress testing against various interest rate scenarios, Fix and Switch simplify this by focusing on current financial standings and the fixed rate period.
How It Works
Current Financial Health: Initially, the assessment evaluates the customer’s current income, expenses, and financial commitments to ensure the mortgage payments are manageable.
Fixed Rate Focus: Since the product offers a five-year fixed rate, the assessment gives weight to the stability of the customer’s current financial situation over this period. This means less emphasis is placed on speculative future financial changes, making the process more straightforward.
Two-Year ERC Consideration: The unique structure of the Fix and Switch mortgage, with its two-year ERC period, also plays into the assessment. The flexibility to switch without penalty after two years is considered, providing a safety net that enhances affordability.
Benefits to the Customer
Clarity and Confidence: Both new and existing customers gain a clear understanding of their mortgage commitments, matched with the reassurance that their financial situation is suited for the product.
Reduced Stress: By simplifying the assessment process and focusing on the present, customers face less anxiety over potential future rate changes and their ability to manage payments.
Flexibility Without Penalty: Knowing they have the option to reassess and switch after two years without financial repercussions offers significant peace of mind and financial planning flexibility.
Virgin Money’s approach to the affordability assessment for the Fix and Switch mortgage not only simplifies the application process but also aligns with the product’s ethos of providing security and flexibility. Customers benefit from a process that respects their current financial reality while offering a path to adapt to future changes, ensuring a mortgage that’s as responsive as it is reliable.
Working with a Mortgage Broker
YesCanDo Money, a fee-free mortgage broker, is committed to providing transparent, comprehensive, and personalised mortgage advice. Our dedicated team stands ready to guide you through the mortgage landscape, ensuring you find a solution that fits your life perfectly, at no cost to you.
Fix and Switch is a game-changer, offering a five-year fixed rate to provide peace of mind and predictable monthly payments, coupled with a two-year Early Repayment Charge (ERC) period, allowing for the flexibility to switch if your circumstances or the market shifts. This dual advantage ensures that homeowners can enjoy the benefits of both worlds — stability in their financial planning and the freedom to adapt without penalties. – Steve Roberts (Founder of YesCanDo Money)
Here’s How We Make a Difference:
Fee-Free Expertise: We offer expert mortgage advice without any fees, ensuring you get unbiased and comprehensive support tailored to your needs.
Personalised Support: Our approach is to understand your unique financial situation and goals, enabling us to recommend whether Fix and Switch is the right choice for you.
Simplified Process: We manage all aspects of your mortgage application from start to finish, providing a seamless and stress-free experience.
Ongoing Assistance: Our relationship doesn’t end with your mortgage approval. We’re here for you over the long haul, ready to assist with any future needs, from remortgaging to adjusting to new financial circumstances.
Get in Touch with YesCanDo Money
Interested in how the Fix and Switch mortgage can align with your financial goals? Reach out to YesCanDo Money before your current deal ends. Our commitment to fee-free service means you can explore your mortgage options and possibly a lower rate and let you make an informed decision without worrying about extra costs.
FAQ Questions for Virgin Money’s Fix and Switch Mortgage
What is the Fix and Switch mortgage from Virgin Money?
The Fix and Switch mortgage offers a five-year fixed rate with the unique flexibility of a two-year ERC, allowing you to switch deals without penalty after two years. Ideal for those seeking stability with the option to adapt to changing market conditions.
How does the Fee-Saver Option benefit me?
Virgin Money's Fee-Saver Option eliminates upfront costs such as product fees, making it more affordable to start your mortgage. It’s designed to reduce initial expenses, helping you save money that can be invested in your new home.
Can I apply for the Fix and Switch mortgage as a first-time buyer?
Yes, first-time buyers can apply for the Fix and Switch mortgage. It's an excellent choice for those seeking fixed monthly payments initially, with the flexibility to reassess their mortgage needs without an ERC after two years.
What makes Fix and Switch exclusive to intermediaries?
Fix and Switch is tailored for intermediaries such as mortgage brokers to offer their clients, providing a competitive edge with its unique combination of a five-year fixed rate and two-year ERC flexibility. It’s a product designed to meet the nuanced needs of modern borrowers.
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Grant Humphries (CeMAP)
Grant Humphries (CeMAP) is a proficient Mortgage & Protection Adviser at YesCanDo Money. With a career spanning since 2001, Grant has honed his expertise in understanding mortgage lenders' criteria, complex financial situations, and the nuances of the mortgage market. His deep knowledge enables him to provide tailored solutions, especially for professionals and those with unique financial profiles. At YesCanDo, Grant's commitment to excellence is evident. He takes pride in guiding clients through their mortgage journey, ensuring they feel confident and informed at every step. From first-time buyers to seasoned investors, Grant's analytical approach and dedication make him a trusted adviser in the financial landscape
