Virgin Money will remove the interest-only cap for loan to income (LTI), which previously stood at 4.49x income.
The LTI rules at Virgin Money are now the same whether a mortgage is capital and interest, interest-only or part and part.
The lender noted that the change around interest-only will allow more customers to get the loan amounts they need, and brokers can support more customers.
For purchase or remortgage with additional borrowing, the LTI cap is 4.49x income for those earning under £50,000, five times income between £50,000 and £74,999 and 5.5x for those with an income of £75,000 or more.
A maximum LTI income of 4.49x limit will apply if the loan is over 85 per cent loan to value (LTV), the applicant is self-employed or for shared ownership.
For remortgage with no additional borrowing, up to 85 per cent LTV the LTI limit is 5.5x income and over 85 per cent LTV the limit is 4.49x income.
If a customer is remortgaging with no additional borrowing, their income and self-employment don’t affect LTI limits, the lender added.
The changes come off the back of affordability changes it made in December, with its maximum mortgage term expanding to 40 years, with more customers able to borrow up to a maximum 5.5x LTI limit.
Anna is currently the deputy editor for Mortgage Solutions and editor for Specialist Lending Solutions. She has worked as a journalist since 2019, having secured her Gold Standard NCTJ diploma from News Associates in a fast-track six-month course.
She started her career as a report at specialist publication The Insurance Insider covering a wide range of areas before joining Mortgage Solutions and Specialist Lending Solutions in 2021.
In her role, she helps put together and structure the news agenda for the day and writes up press releases, reports, interviews, analyses and exclusives across both titles. She also commissions blogs for Specialist Lending Solutions and hosts online masterclasses and in-person events across the business.
She has been shortlisted for three journalism awards, which include BIBA Journalist and Media Awards Scoop of Year Award in 2020, Headline Money Mortgage Journalist of the Year Award (B2B) in 2022 and 2023.
Prior to being a journalist, Anna worked in ecommerce across Snow + Rock, Cycle Surgery and Runners Need websites, and before that worked at specialist financial PR firm Rostrum.
In her spare time, Anna enjoys reading, seeing live music, and cooking for friends and family. When she gets a chance, she also enjoys hiking, skiing and indoor rock climbing.
