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Virgin Money and Clydesdale increase LTVs and update borrower income assessment

  • 16/04/2020
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Virgin Money and Clydesdale increase LTVs and update borrower income assessment
Virgin Money and Clydesdale Bank are reintroducing mortgages for property purchase to their residential and buy-to-let (BTL) ranges and extending maximum loan to values (LTVs) due to the increased use of desktop valuations.


The lenders have also overhauled their income affordability assessments, which include not allowing borrowers using either the employed furlough or self-employed income support programmes when assessing affordability.

No forms of variable income will be considered with affordability only assessed on basic salary.

Self-employed customers will also need to provide their last three months business bank statements to evidence continued turnover.

And for BTL, personal income will not be accepted on BTL applications where there is a rental shortfall between 100 per cent and 145 per cent.


Product range

A broker communication sent today by Virgin Money outlined the product range details, and the lender confirmed to Mortgage Solutions that the same details will be sent out to brokers from Clydesdale Bank tomorrow.

The new product range will be available from 17 April and extends the maximum loan to value (LTV) on residential remortgage cases to 75 per cent and for all BTL cases to 60 per cent.

A broker communication sent today showed the new range of products is available for properties valued between £80,000 and £500,000 and come in two-, three- and five-year fixed rate versions.

The home purchase deals are available at up to 65 per cent LTV and start at 1.62 per cent, with a two-year tracker available for existing customers.

The changes to affordability policy do not impact applications received before 17 April, which will continue to be assessed on a case-by-case basis, the lender said.

The lender had to remove its purchase products from the market and cut its maximum loan to value as it dealt with the restrictions from the coronavirus.

Residential remortgages were limited to 60 per cent LTV with BTL deals capped at 55 per cent.


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