Virgin Money revises interest-only policy

Virgin Money revises interest-only policy

Virgin Money

Virgin Money has amended its policy on interest-only residential mortgage lending and will now accept interest-only cases up to 70% loan to value (LTV), compared with the previous level of 75%.

The policy for using the sale of another property to repay an interest-only loan has been changed. The maximum LTV for this repayment vehicle is now 60%, bringing it into line with the maximum LTV permitted where sale of the mortgaged property is the designated repayment vehicle.

The revised policy applies to all new Decisions in Principle (DIPs) generated from 31 May 2012. All DIPs and pipeline applications which have been agreed prior to the new policy will be honoured.

Existing customers who want to port their mortgage to a new property or remortgage to a new product with Virgin Money are able to do so on their existing interest-only arrangements, providing there are no material changes to the loan (such as an increase in loan size or a change to the term of the loan).