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Important changes to Virgin’s buy to let policy.

05 December 2016

Virgin Money
Virgin Money is making changes to their Buy to Let lending policy which will take effect today,  Monday 5 December. 

Interest coverage ratio 
  • Their interest coverage ratio will increase from 125% to 145%.

Interest rate stress 

  • They will change their interest rate stress from Buy to Let Variable Rate +1% (currently 5.74%) to 5.50% for all tracker and fixed rate products of less than five years.
  • The stress rate for five year fixed rate products will be the higher of the product rate or their Buy to Let Variable Rate (currently 4.74%).

Maximum mortgaged properties

  • They will no longer accept applications from customers with more than 11 mortgaged properties in total in their portfolio. 
  • The maximum portfolio limit of £2 million and/or four properties with Virgin Money will remain unchanged. 


When will these policy changes take effect?

The new policy will apply to any Buy to Let Decision in Principle (DIP) submitted on or after today Monday 5 December. 

Competitive products for your landlords

Alongside these policy changes, Virgin Money continue to support Buy to Let landlords with competitive products. So whether your customers are keen to get into property or expand their portfolios, why not give them a helping hand with one of their headline deals?

  • 2 year fixed rates at 60% LTV available from 1.59%
  • 5 year fixed rates at 60% LTV available from 2.48%

And remember, all their Buy to Let deals come with £500 cashback. 

What else do you need to know?

For full details of their current lending policy, visit their website or download their A-Z Lending Policy App, and get instant easy access to their policy on the go. 


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