Fix your mortgage for six-years at 3pc? Gone in two days

Virgin Money has withdrawn its six-year mortgage, fixed at a very low 2.99pc, just two days after its launch following strong demand from customers.

The loan, launched on Wednesday morning and closed late on Friday, was the only six-year fix on the market. To qualify borrowers needed a minimum 30pc deposit and were required to pay an upfront fee of £995.

Lenders have a pot of money set aside for each deal and when it runs out, they either access more funding or pull the loan. A spokesman said the lender had warned earlier this week that it could withdraw the product at short notice.

Ray Boulger, of brokerage John Charcol, said he was surprised Virgin Money pulled the loan so quickly, but added there is clearly strong demand for longer term fixes that are priced competitively.

A number of lenders have launched cheap five-year fixes in recent weeks, with the best buys falling back below 3pc.

The pricing of fixed mortgages mainly depends on whether banks can access cheap money to lend out. Good inter-bank rates - coupled with increased competition - has led to attractive new mortgage deals where the rate is fixed for far longer than usual.

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