Virgin Money has introduced a new purchase product range and made changes to its affordability policy.
It has increased the use of desktop valuations and can now offer selected purchase products. Virgin Money has also expanded its LTVs across our residential remortgage range and buy-to-let products.
The core range has been extended to include the following products available for properties valued between £80,000 – £500,000:
- New 75% LTV two, three and five-year fixed rates for residential remortgage
- New 65% LTV for residential purchase deals with free valuations starting from 1.62%
- New buy-to-let purchase deals up to 60% LTV with £300 cashback and free valuation starting from 1.45%
- New buy-to-let remortgage LTV increased to 60% LTV
- New two-year Freedom to Fix trackers for existing customers
End dates will remain at 1 July of the relevant year.
Some restrictions apply to the types of lending Virgin Money is currently able to offer; for example, it is currently unable to accept new build applications.
In addition, Virgin Money has made some temporary changes to its lending policy. It is currently unable to accept the following:
- Any form of variable income (overtime, commission, bonus). Affordability will only be assessed on basic salary.
- Where an employed customer is designated as furloughed, or a self-employed customer has applied for the self-employed income support scheme, their income will not be used in the affordability assessment.
- Personal Income will not be accepted on buy-to-let applications where there is a rental shortfall between 100% and 145%.
Self-employed customers will also need to provide their last three months’ business bank statements to evidence continued turnover.
Finally, Virgin’s 10-day Application to Offer Service Commitment has been paused.
