Virgin Money Withdraws New BTL Deals: Strategic Steps for Landlords Amid Keystone Rate Hikes

Virgin Money Exits New Buy-to-Let Mortgages — What This Means

As of 28 April 2026, Virgin Money has withdrawn all new buy-to-let (BTL) mortgage deals. Although existing clients with Virgin can still access fixed rate product transfers, no new BTL lending products will be offered. This withdrawal narrows the lender landscape considerably, especially for landlords accustomed to Virgin’s offerings.

Keystone Property Finance Raises Rates Amid Economic Pressures

Keystone Property Finance has increased its two- and five-year fixed BTL mortgage rates, driven by rising SWAP rates linked to ongoing economic and geopolitical uncertainties. For landlords with Keystone mortgages or plans to borrow from them, this translates to increased borrowing costs.

Other Market Movements: Winners and Losers

While Virgin Money and Clydesdale Bank have ceased new BTL lending, other lenders are reacting differently. Notably, Kensington and Molo have lowered some BTL rates, providing potential alternatives. The Mortgage Works (part of Nationwide) remains active in the BTL mortgage space, offering a crucial route for landlords seeking new finance.

What Landlords Need to Do Now

1. Audit Your Existing BTL Mortgage Portfolio

Identify any Virgin Money fixed-rate mortgages you currently hold. Consider if transferring to a new fixed product is beneficial before existing deals expire, especially with no new Virgin BTL deals available to compare against.

2. Rethink Mortgage Sourcing Strategies

With Virgin and Clydesdale off the new lending table, pivot to active lenders such as The Mortgage Works or those lowering rates like Kensington and Molo. This may involve building new lender relationships or updating your mortgage broker’s panel.

3. Communicate Cost Implications to Tenants and Stakeholders

Keystone’s rate hikes may increase monthly mortgage outgoings. Assess potential impacts on your rental pricing strategy and be transparent with tenants about cost pressures where appropriate.

4. Monitor Market Volatility Closely

BTL mortgage product availability and pricing remain unstable. Set regular reviews of lender announcements and market data. Early awareness enables swift action to capture favourable deals or to refinance before rate increases.

Considerations for Different Landlord Profiles

• Single-unit landlords and accidentals: May benefit most from streamlined lender options like The Mortgage Works and should prioritise simple, low-maintenance refinancing.
• HMO and portfolio landlords: Need to consider the aggregate impact of rate changes and lender withdrawals on multiple properties. Strategic refinancing and portfolio-level review are advisable.

Next Steps for Your Property Team

• Schedule a comprehensive review of all BTL mortgage arrangements this quarter.
• Engage mortgage brokers to explore current best buy-to-let mortgage products.
• Develop communication templates to inform tenants and stakeholders about potential rent adjustments due to borrowing cost changes.

How Rentals & Sales Can Support

Our specialist team offers tailored portfolio reviews and compliance audits to help landlords navigate these market shifts. We analyse mortgage structures, recommend refinancing opportunities, and assist with pricing strategy adjustments to protect returns.

Compliance note: This article provides general guidance and should not replace personalised financial advice. Landlords should consult mortgage advisors and legal professionals when making decisions about property finance.