Virgin Money is the latest provider to slash the rate on its Help to Buy Isa, putting more pressure on first-time buyers looking to save a deposit while house prices continue to rapidly outpace earnings.
Until yesterday, Virgin Money offered 3% interest to people signing up for its Help to Buy Isa, but new customers will now only receive 2.5%. Existing customers will still get 3%.
A spokesperson for Virgin Money says its rates remain competitive.
Best Help to Buy Isa buys
Despite Virgin’s rate cut, it is still the joint-best Help to Buy Isa for most people in the UK. Halifax also pays 2.5% to new customers, as does Santander, but only for people with its 123 Current Account.
There is a 4% Help to Buy Isa from Cumberland Building Society, but it’s only available to people in parts of North West England and Southern Scotland.
Residents of Northern Ireland can also sign up for the Progressive Building Society’s Help to Buy Isa, which pays 2.75%.