The ICR for basic rate taxpayers remortgaging with no additional borrowing and purchase or remortgage with additional borrowing is 125 per cent.
The ICR for higher or additional rate taxpayers remortgaging with no additional borrowing is 125 per cent and those purchasing or remortgaging with additional borrowing the ICR is 145 per cent.
For five-year fixed rates or less and variable rates, the stress rate for those remortgaging with no additional borrowing is the higher of five per cent or pay rate plus one per cent. This also applies to five-year fixed rates plus.
For five-year fixed rates or less and variable rates, stress rates for purchase or remortgage with additional borrowing, it is the higher of 5.5 per cent or pay rate plus two per cent and for five-year fixed rates or more it is the higher of 4.5 per cent or pay rate of plus one per cent.
The lender’s two-year fixed rate buy-to-let product starts at 5.76 per cent and its five-year fixed begin at 5.32 per cent. The stress rate will start at 6.76 per cent and 6.32 per cent respectively.
Virgin Money: ‘Supporting landlords’
Craig Calder, head of secured lending at Virgin Money, said: “A vibrant rental sector plays a key role in the wider mortgage environment and as such we have made changes to our Virgin Money Buy-to-let mortgage lending policy.
“We continue to evolve our mortgage policy and these changes ensure that we are supporting landlords through an improved affordability assessment.”
Virgin Money is the latest lender to make changes to its stress rates in the past week, with Santander increasing its buy-to-let stress rate and Natwest lowering it.
