Virgin Money has made a positive change to its loan-to-income (LTI) policy.
The lender has removed its interest-only cap, so the repayment method no longer features in its LTIs anymore.
Virgin Money’s new loan-to-income policy is as follows:
Purchase or remortgage with additional borrowing:
- Income under £50,000 – 4.49x
- Income £50,000 to £74,999 – 5x
- Income of £75,000 or more – 5.5x
Max 4.49x LTI, whatever the income, if any of the following apply:
- Over 85% LTV
- Any applicant is self-employed (not including contractors meeting our contractor policy)
- Shared ownership
Remortgage with no additional borrowing:
- Up to 85% LTV – 5.5x
- Over 85% LTV – 4.49x
When a customer is remortgaging with no additional borrowing, their income and self-employment don’t affect LTI limits.