Rate Cuts Heat Up 2025: Virgin and Atom Slash Mortgage Prices Across the Board

Contractors, if you’ve been waiting for a better entry point into the mortgage market, now is the time to pay attention. Virgin Money and Atom Bank have both rolled out significant mortgage rate reductions in early 2025, intensifying market competition and potentially saving you thousands over the life of your loan.

Virgin Money has launched new exclusive purchase products while cutting rates across its residential, buy-to-let (BTL), and product transfer ranges. Highlights include a new five-year fixed rate at 75% loan-to-value (LTV) priced at 4.09% with a £895 fee — ideal for borrowers seeking stability in a volatile rate climate. A fee-free version is also available at 4.22%. The lender has also reduced the 80% LTV exclusive two-year fixed fee-saver by 0.08% to 4.44%. Shared ownership fixed rates were not left out either, with cuts of up to 0.17%, bringing some options down to 4.25%. For landlords, Virgin has trimmed select BTL two- and five-year fixed rates with a £2,195 fee by up to 0.15%, starting from 4.14%. Versions with a 1% fee were also cut by up to 0.12%, beginning at 4.12%. On the product transfer side, select five-year BTL rates dropped by 0.10% and two-year options by 0.05%.

Meanwhile, Atom Bank has reduced rates on its prime residential mortgage products by up to 0.20%, with the most generous cuts targeting borrowers with only a 5% deposit. Two- and three-year fixed rates now start from 5.14% with no product fee, while five-year fixed deals begin at 5.09%. Richard Harrison, Atom’s Head of Mortgages, commented: “This is particularly important for borrowers with small deposits who may have tighter budgets and do not benefit from the widest range of choice.” These changes are a boost for contractors and self-employed professionals, especially those who often find themselves overlooked by traditional lenders. But with rates still above 5% in some brackets and competition high, planning ahead is key. At Contractor Mortgage Solutions, we specialise in helping contractors secure competitive deals by accurately assessing your income based on day rate and contract terms — not outdated payslip assumptions. Whether you're eyeing your first home or planning a refinance, our expert tools and support are here to give you a head start.