Lender rings in the new year with rate changes

Virgin Money has announced that effective Friday 6 January it will make changes to the interest rate of its Reward Me Home Loan.

Its 1 year fixed rate for owner-occupiers will fall by 16 basis points from 4.40 per cent to 4.24 per cent while its 2 year fixed rate will fall by 26 basis points to 3.99 per cent.

However, Virgin Money’s 3, 4 and 5 year fixed rates for owner occupiers will all increase by 20 basis points.

For investors, 1 year fixed rates will fall by 21 basis points to 4.34 per cent while 2 year fixed rates will fall by 30 basis points from 4.35 per cent to 4.05 per cent.

There is no change to Virgin Money’s 3.99 per cent 3 year fixed rate for investors. However, 4 and 5 year fixed rates will increase by 24 and 19 basis points, respectively.

Variable rates for owner-occupiers will increase by 10 basis points to 4.64 per cent. Investors will also be hit with a 10-basis point rate hike, lifting the variable rate from 4.84 per cent to 4.94 per cent.

[Related: RBA unlikely to follow Fed by lifting rates]