Virgin’s mortgage woes

FIERCE competition in the mortgage market is squeezing Virgin Money.

Virgin, which has £32.9bn of home loans on its books, is engaged in a vicious battle with rivals for customers. But yesterday, the bank said its share of the mortgage market will next year be at the bottom end of the 3pc-to-3.5pc range it has been aiming for.

Shares fell 5.2pc, or 14.4p, to 260.6p, as traders speculated profits will take a hit.

It suggests that the Bank of England’s recent decision to increase base interest rates from 0.25pc to 0.5pc has done nothing to rein in the rivalry.