Mortgage News
Virgin Money updates interest only policy
Virgin Money has made a number of changes to its interest only criteria for residential deals, including removing the requirement for a minimum property value of £500,000.
In a broker statement, the lender said it has introduced a maximum loan-to-income multiple of 3.5 for interest only and part-and-part deals in a move to ensure ‘strong affordability’.
At the same time, its minimum income requirement has dropped from £100,000 to £50,000, which is inclusive of additional income such as bonuses and overtime.
The changes will apply to all deals that receive a decision in principle (DIP) with immediate effect. Virgin Money will honour any DIP that has already been approved based on its existing policy if it is converted to a full application within the 90 day validity period.
Virgin’s maximum loan-to-value for interest only or part-and-part residential loans is 70%, but deals are not available to first-time buyers.
Capital raising for debt consolidation is not permitted and at least one repayment strategy must be in place at the end of the mortgage term.
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