Residential policy
Residential mortgage customers can seek permission from us to let their property on a temporary basis subject to the following conditions:
- The mortgage must be at least 6 months old (except where the customer is a member of the Armed Forces)
- Maximum LTV 80%, subject to usual maximum loan and LTV criteria
- The maximum period we can agree is 12 months. Customers can apply for an extension at the end of that period
- Lodgers/holiday lets are not acceptable
- Property should be self-financing, with the rental income covering 125% of the mortgage interest, based upon either a 5% interest rate, or the mortgage product rate +1%, whichever is higher.
- Personal income cannot be used to support the affordability assessment
- We require confirmation of rental income from a reputable letting agent or a copy of the tenancy agreement. Lettings in England must be assured periodic tenancies under the Housing Act 1988 (as amended by the Renters Rights Act 2025)
- There is a fee, currently £125, for each consent to let that is granted
Applicants are reminded that they are solely responsible for ensuring full compliance with all legal and regulatory obligations introduced by the Renters’ Rights Act 2025 when letting their property.
- This Act delivers significant reforms to the private rented sector in England, including the removal of Section 21 “no‑fault” evictions, the introduction of a new assured periodic tenancy framework, and enhanced rules governing rent increases, possession grounds, and tenant protections.
- Customers must familiarise themselves with these requirements, as well as any future updates to the legislation, since failure to comply may lead to substantial legal or financial consequence.
- Virgin Money is unable to provide legal advice and will rely on customers to ensure that their letting arrangements fully adhere to the Act and all associated regulations.