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Virgin Money and Sainsbury’s Bank amend criteria and affordability calculations – roundup

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  • 04/06/2019
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Virgin Money and Sainsbury’s Bank amend criteria and affordability calculations – roundup
Virgin Money has increased its offer validity on residential, buy-to-let (BTL) and new build shared ownership to six and seven months respectively, while Sainsbury's Bank has improved its overall affordability calculations.

 

Virgin Money’s offer validity period increased from four to six months for new to bank residential and BTL purchase and remortgages.

Also, its offer validity period rose from six to seven months for new build shared ownership. This increase aligns new build shared ownership with the wider new build range.

Andrew Asaam, director of mortgages at Virgin Money, said: “We review our lending policy on a regular basis and look to continually makes enhancements where possible to make it easier for people to do business with us.

“We have listened to valued feedback from our intermediary partners and view these increases in offer validity as a very positive step.”

 

Sainsbury’s Bank

Sainsbury’s changes will increase the overall loan amount brokers will now be able to offer, helping more customers secure the right mortgage to suit their requirements.

According to research undertaken by HD Decisions on behalf of Sainsbury’s Bank, examples of these increases could mean a joint application with two dependants at 65 per cent loan to value (LTV) see a £40,000 average uplift in lending amount, which is a 14 per cent increase in accept rate.

A single applicant with one dependant at 70 per cent LTV could find a £30,000 average uplift in lending amount, which is a 13 per cent increase in accept rate.

Meanwhile, the bank said a joint application for first-time buyers with two dependants at 90 per cent LTV would see a £47,000 average uplift in lending amount, which would give a 10 per cent increase in accept rate.

David Crooke, head of intermediaries at Sainsbury’s Bank (pictured), said: “This announcement illustrates that we will always listen to the needs of our broker network and be responsive to their feedback. Our new affordability calculations will make it easier for our broker network to do business with us.”

 

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