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The purpose of this search facility is to provide guidance on Virgin Money's Lending Criteria. You can either browse alphabetically or enter a keyword you would like to search in the panel on the left hand side.
Showing results for A-B
If a customer is anticipating a temporary reduction in their income, the customer's return to work salary will be used for affordability purposes providing the customer is due to return to work within the next three months.
For periods of absence between four and twelve months, the customers return to work salary will be used, providing the customer evidences how they intend to cover the shortfall in income e.g. savings. The shortfall is defined as the lower of the total contractual mortgage payment or the reduction in net income, for the total period of absence.
The below examples show how we would calculate the shortfall:
We will require evidence of how the customer will cover the shortfall, including savings accounts, bank statements and share certificates. Please note these can be in the name of either borrower, if a joint application.
When a customer is on or due to go on maternity or paternity leave the dependant field must be updated accordingly and childcare costs included as part of the customer's regular and essential expenditure, or an explanation provided as to why they do not apply.
For all periods of absence the customer must provide confirmation of the return to work date and salary.
We offer additional borrowing exclusively to our existing mortgage customers who wish to release additional equity without remortgaging or carrying out a product transfer.
Our additional borrowing has the following key features:
If your client wants to release additional equity, they can contact us on 0345 600 6622**.
**Calls to 03 numbers cost the same as calls to 01 or 02 numbers and they are included in inclusive minutes and discount schemes in the same way. Calls may be monitored and recorded.
Applicants should have a strong credit history and this will be assessed during our underwriting process.
If a customer has any adverse credit then their application will be subject to assessment, but just so you know here are some of the situations where we won't be able to help:
For borrowing over 90% LTV no defaults are permitted, the customer must be up to date on all items of credit and have no missed payments in the last 6 months.
Our lending decisions are based upon a full affordability assessment whereby we will assess if the loan is affordable based on the applicant's income, loan/credit card commitments and regular and essential household expenditure.
Please note, for all residential loan applications the income being used to assess affordability must be paid in GBP / £Sterling. We will require evidence of this income.
Please ensure you use our Online Affordability Calculator before submitting a Decision in Principle.
We require a Monthly Essential and Regular Expenditure Form for some customers who have low levels of outgoings in relation to their circumstances. An automated prompt on the Online Affordability Calculator will tell you when to fill this in for your client.
Providing the income and expenditure information input is accurate the calculator will provide you and your clients with an accurate illustrative borrowing figure.
Please send completed forms to us using one of four options:
Alternatively documents can be sent via post.
If supporting documentation is not received in a timely manner, we reserve the right to cancel the original application including the product requested.
Minimum age | Maximum age at the end of mortgage term | |
Residential | 18 years | 75 years and 364 days |
BTL | First named customer - 21 years. Additional customer(s) - 18 years | 85 years and 364 days |
For full details of our retirement policy, please view the Retirement section.
The maximum number of customers per application is 4. In these circumstances income and affordability is assessed on the income of the two highest earners.
Where there are more than two applicants, a paper application will be required.
Applications will be considered where they meet the following criteria:
For income verification purposes we require two of the last four months bank statements (to correspond with the payslips provided) to evidence salary credits if the customer:
Virgin Money must be able to assess a track record to consider the application.
We offer Buy-to-Let (BTL) and Consumer Buy-to-Let (CBTL) loans.
We consider both BTL and CBTL business to be a property that is occupied under a rental agreement and where there is no intention for the borrower or family member to reside. These loans are not regulated by the Financial Conduct Authority (FCA) under the Mortgage Conduct of Business (MCOB). If your client(s) or their family member(s) are to reside in the property at any time during the term of the loan it will be a FCA Regulated Mortgage Contract (RMC) under MCOB.
The following examples explain what we consider to be either BTL or CBTL. For information relating to our BTL Portfolio Landlord criteria view the separate section below.
BTL loans:
CBTL loans:
Policy criteria for BTL and CBTL loans
The below policy criteria, including affordability and rental assessments, applies to both, CBTL and BTL.
The following conditions must be met:
If there is a rental shortfall between 100% and 145%, calculated at the product rate + 2%, a notional rate of 5.50% or the BTL Variable Rate, whichever is higher, we will accept personal income to cover this. Personal income is not considered for BTL portfolio landlords, LTVs greater than 75% or where the term extends beyond 75 years of age.
The rental income for a straight balance swap BTL remortgage must cover the mortgage payment by 125% calculated at the product rate plus 1% or a notional rate of 5.00%, whichever is higher.
Virgin Money considers a property as ready to let if the following can be met:
Any property which does not meet the above requirements will not be acceptable to us on a BTL basis until further improvements have been made to bring the property up to the required minimum standard.
Restrictions:
A portfolio landlord is defined as having four or more mortgaged BTL properties on completion of the new transaction. For joint applications, this includes mortgages held together or separately.
Existing portfolio checks:
We require the following forms to be completed for each of your landlord clients:
Portfolio landlord balance swap remortgages and product transfers
If your portfolio landlord client is wishing to secure a new deal without taking any additional borrowing, either through a remortgage to Virgin Money or through a product transfer:
Please see the table below to confirm when the additional portfolio landlord criteria applies:
BTL customer type | |||||
---|---|---|---|---|---|
Non-Portfolio Landlord | Portfolio Landlord Purchase* | Portfolio Landlord Remortgage / Product Transfer, increasing balance | Portfolio Landlord Remortgage / Product Transfer, no increase in balance | ||
Lending criteria | Maximum BTL exposure with Virgin Money | 3 properties | £3m/5 properties | £3m/5 properties | £3m/5 properties |
Minimum 24 month's landlord experience | n/a | ![]() | ![]() | n/a | |
Maximum ten mortgaged BTL properties (across all lenders) | n/a | ![]() | ![]() | n/a | |
Maximum five BTL properties in the same postcode e.g G1 2HL | n/a | ![]() | ![]() | n/a | |
Maximum 75% LTV across portfolio (at an aggregate level) | n/a | ![]() | ![]() | n/a | |
Assess your aggregate portfolio using a minimum rental calculation of 135% ICR stressed at 5% | n/a | ![]() | ![]() | n/a | |
Personal income accepted to cover any shortfall | ![]() | n/a | n/a | n/a | |
Documentation | Property schedule - upload to our BTL Hub | n/a | ![]() | ![]() | n/a |
Business Plan and Cashflow form | n/a | ![]() | ![]() | n/a |
* For customers choosing to port their existing Virgin Money mortgage to a new property, our portfolio landlord purchase criteria and documentation requirements apply.
This website is for use by Virgin Money Intermediaries ONLY. Do not access this area or rely on any information/representations contained therein if you are a personal customer of Virgin Money or you are a private individual wishing to enquire regarding products & services offered by Virgin Money.
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