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Virgin Money makes raft of criteria changes

  • 21/03/2024
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Virgin Money makes raft of criteria changes
Virgin Money has changed its criteria around second incomes, contractors’ contracts and probation to improve affordability and improve the application process.

In an update, Virgin Money said that it can use 100 per cent of income from second jobs, where it has been received for at least 12 months.

Previously, the lender had used 50 per cent of income from second jobs and required two years of employment history.

With contractors’ contracts, it will only need to see a renewal if there was less than one month left on it. The lender had previously needed to see a renewal if there were three months left on the contract.

Virgin Money has also made it easier for people in probation to apply for a mortgage with it, as it only requires a copy of their contract, along with a payslip, to prove it’s permanent.

Prior to this, the lender had needed two years’ employment or an employment letter.

Craig Calder, head of secured lending at Virgin Money, said: “We constantly look for ways to improve our mortgage business, and the latest changes to our lending policy will make it easier to get a mortgage with Virgin Money.

“The application process for contractors or those who are in a probationary period in a new role will be far simpler, and we’re able to say yes to more customers who have income from a second job.”

The lender recently partnered with Own New, along with Halifax, offering reduced mortgage rates to borrowers, both first-time buyers and homemovers, buying new-build properties. It then went on to widen distribution to more eligible mortgage brokers.

Virgin Money recently updated its affordability assessment for residential products fixed for five years or longer to increase the amount that can be lent.

It also removed its interest-only cap for loan to income (LTI) and extended the maximum mortgage term for all residential mortgages to 40 years. The maximum mortgage term previously was 35 years.

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