For lending into retirement to residential borrowers, Virgin has amended its policy to allow more applicants to use their current income for affordability, the lender said in a statement to brokers.
If the customer is 10 years or more away from their expected retirement date affordability will now be based on their current income, providing the customer evidences they are making provisions into a pension. For customers within 10 years of either their anticipated retirement date or age 67, whichever comes first, Virgin will now base affordability on the lower of current income or expected pension income.
Virgin’s maximum age policy remains unchanged, with the age limit for end of term at 75 years and 364 days.
For buy-to-let and residential customers, Virgin has increased the maximum number of storeys allowed for flats and maisonettes across the UK to 10. A more relaxed policy will be applied to certain areas and boroughs of London, with blocks accepted with an unlimited number of storeys.
Where a building has more than 10 storeys, the maximum loan-to-value (LTV) will be restricted to 80% for all properties within the building.
In changes to its policy for leasehold, Virgin will now require a minimum unexpired term of at least 70 years at the point of application.
The new policy is applicable to all Decisions in Principle with immediate effect, with DIPs already approved on Virgin’s existing policy to be honoured if converted to a full application within the usual 90 day validity period.