03 November 2016
Virgin Money has made some great changes to their mortgage lending policy for residential and buy to let customers.
Virgin Money has increased the maximum number of storeys they will now accept for flats and maisonettes across the UK to 10.
What’s more, in the following areas of London, they will now accept blocks with an unlimited number of storeys:
Where the building has more than 10 storeys, the maximum LTV will be restricted to 80% for all properties in the building.
Virgin Money has improved their affordability policy for residential applicants borrowing into retirement. If the customer is 10 years or more away from their expected retirement date then affordability will be based on their current income, providing the customer evidences they are making provisions into a pension.
If the customer is within 10 years of either their anticipated retirement date or age 67 (whichever occurs first), affordability will be based on the lower of current income or expected pension income.
Their new policy will allow more applicants to use their current income for affordability.
Their maximum age policy remains unchanged. For all customers and guarantors, the maximum age at the end of the mortgage term is 75 years and 364 days.
Virgin Money has also changed their policy for leasehold properties. They now require a minimum unexpired term of at least 70 years at the point of application.
Their new policy applies to any Decision in Principle (DIP) with immediate effect. Any DIP which has already been approved based on their existing policy will be honoured if converted to a full application within the usual 90 day validity period.