Virgin Money has increased the maximum loan to value (LTV) limit on new-build properties, the maximum mortgage term at 95 per cent LTV and simplified its bonus policy.
The maximum LTV on new-build homes is 90 per cent and for flats this is 80 per cent. For shared ownership borrowing, the bank will maintain lending up to 95 per cent LTV of the share being purchased, including new builds.
Virgin Money has also extended the maximum term at 95 per cent LTV to 35 years, standardising the mortgage length across all tiers.
Regarding bonuses, the bank will now calculate affordability on the latest year’s bonus at a rate of 60 per cent. It no longer requires a bonus to have been received after 2 December 2020.
It will only need to use a two-year average or the most recent year if it is lower where the variable pay exceeds basic income.
Annual, six-monthly and quarterly bonuses for employed borrowers will be considered.
Changes will apply to Virgin Money products only.
Shekina is the deputy editor at Mortgage Solutions and commercial editor at Mortgage Solutions and Specialist Lending Solutions. She has nearly eight years of experience in the B2B publishing market, having previously covered the hospitality, retail, pet, accounting and jewellery sectors.
Shekina has worked for Mortgage Solutions and Specialist Lending Solutions for almost five years. Here, she covers the market’s breaking news stories, engages with professionals in the sector, and oversees any commercially agreed content in partnership with mortgage-related companies.
This includes presenting webinars and hosting roundtable discussions on developing themes in the mortgage sector.
She is an NCTJ-trained journalist and was nominated for the Headline Money Awards Mortgage Journalist of the Year in 2021.
In her spare time, Shekina likes to read, travel, listen to music and socialise with friends.
She currently reports on current events in the mortgage market and liaises with financial clients to produce sponsored content.
Follow her on Twitter at @ShekinaMS
