Virgin Money group lifts variable rates by 50bps

The lender, which also includes Clydesdale and Yorkshire Bank in its group, says its residential standard variable rate will increase 50 basis points to 5.99%.

The move comes after the central bank lifted interest rates by 50 basis points to 1.75% last month, its biggest hike since 1995, which raised the base rate to a fresh 40-year high. It was the sixth rate rise since last December.

The high street lender adds that its loyalty rate, for qualifying residential customers who have held a mortgage on a property for seven years or more, will lift by 50bps to 5.74%. And its buy-to-let variable rate rise by 50bps to 6.19%.

The lender says the revised rates will take effect for new customers from 6 September and from 1 October for existing customers.

The group says at Clydesdale Bank and Yorkshire Bank their residential standard variable rates will increase by 50bps to 5.99%. Their residential offset variable rates rises by 50 bps to 6.20%.

And their buy-to-let revert rates, offset variable investment housing loan rates, all increase 50bps to 6.60%.

The group says the revised rates at these pair of lenders will take effect for new customers from 6 September and for existing customers from their next payment date after 6 September.