As part of the new offering, Virgin Money is giving customers the option of two different products, which include:

• Five Year Fixed, Two Year Early Repayment Charge at 85 per cent LTV Fee Saver at 5.14 per cent
• Five Year Fixed, Two Year Early Repayment Charge at 90 per cent LTV Fee Saver at 5.27 per cent

On top of these mortgage deals, customers are also being offered a cashback incentive from the lender worth £500.

It should be noted that customers will have their affordability assessment for Fix and Switch based on a five-year deal.

David Hollingworth, the associate director at L&C Mortgages said: “The mortgage market has provided so many ups and downs in the last couple of years that it’s understandable that borrowers will be struggling to decide on the best approach.

“Virgin Money’s innovative product offers an alternative and welcome solution to those that feel there’s room for rates to improve over the next couple of years but don’t want to be caught out if the outlook shifts again.

“There will no doubt be customers attracted to the ongoing certainty of rate if required but with the flexibility to review in 2 years.”

Craig Calder, the head of secured lending at Virgin Money, added: “In today’s higher interest rate environment, many mortgage borrowers are looking for long-term payment certainty, but don’t want to be tied in for the long-term.

“Fix and Switch is the perfect solution for them, providing the certainty of a five-year fixed rate with the flexibility of a two-year ERC if rates begin to fall.”

Mortgage holders have been saddled with rising repayments following the Bank of England’s decision to raise interest rates over the last year-and-a-half.

Economists have warned that the central bank will likely keep the base rate at its current level of 5.25 per cent for at least another month.

The Bank of England will next make an announcement regarding interest rates on February 2, 2024.