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Virgin Money suspends new purchase apps; caps remo to 60 per cent LTV

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  • 31/03/2020
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Virgin Money suspends new purchase apps; caps remo to 60 per cent LTV
Virgin Money is not accepting any applications for house purchase either for residential or buy-to-let (BTL) borrowing purposes.

 

The lender is only accepting remortgage applications up to 60 per cent loan to value (LTV) on residential properties and has tightened loan and property values.

For buy-to-let applications the maximum LTV is 55 per cent, again only for remortgages.

It has made the changes as a result of the restrictions on valuations due to the coronavirus crisis.

A message on its website said that while it is using automated valuation models (AVMs) and desktops wherever possible for remortgage business, it had to take a difficult decision and temporarily suspended new purchase applications.

“This is a decision that we have made reluctantly, but feel that it is sensible in light of the restrictions the industry faces, and allows us to continue to help those existing customers who are in need of immediate support at this time,” it said.

 

Pipeline cases

The lender, which includes Clydesdale Bank and Yorkshire Bank after last year’s merger, confirmed it would progress pipeline cases where physical valuations have already been obtained or are not needed.

However, applications which require a physical valuation will be put on hold.

It added: “We appreciate that this will be a stressful time for many of your clients in the process of buying or selling a property.”

Residential remortgage applications are being accepted up to 60 per cent LTV, for loan sizes up to £300,000, with a minimum property value of £80,000 and maximum of £500,000.

For buy-to-let remortgage applications, the maximum LTV is 55 per cent with a maximum loan size of £275,000. A minimum property value of £80,000 and maximum of £500,000 applies, and the lender said it is unable to accept personal income cases.

 

 

 

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