A lender has increased interest rates on home loans, as experts predict that this trend will continue in 2019.
Virgin Money today announced changes to its variable rates for all major interests (P & I ) and interest (IO) existing home loans, increasing rates by 20 basis points (bps).
The group said that most of the standard variable rates for new home loan applications will remain unchanged, with only a few increases.
Virgin Money also announced that it is reducing fixed rates between 5bps and 10bps for the following products:
- Fixed rates at two and three years for the capital of the owner occupant and loans for interest exceeding $ 300,000 with an LVR of 90% and lower; and
- Fixed rates of two to three years for investment interest loans with an LVR of 90% or less.
Click here for a complete list of rate changes.
General Manager of Virgin Money, Loan, Cards and Deposits Johnny Lockwood said: "The decision to raise interest rates is never straightforward.
" We have absorbed higher financing costs in the last twelve months in order to delaying the impact of our home mortgage customers. Unfortunately, financing costs remain high and are likely to remain high in the near future. "
Changes in the interest rate are effective on Friday 1