Branson's Virgin Money launches home loan

Billionaire Richard Branson hopes to corner to five per cent of Australia's mortgage market with the launch of a new home loan product today.

The offer is being made through Branson's financial services arm, Virgin Money.

The loan offers a variable interest rate of 6.59 per cent per annum with no annual fees.

Sir Richard told news agency AAP that Virgin Money expects to shake up the mortgage market in Australia.

"We have shaken up the airline, mobile phone, credit card and superannuation industries," he said.

"We plan to do the same with the mortgage industry.

"For most people in Australia, they are paying a lot more for their mortgages than they need to," he told AAP.