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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 I-J
A customer's identity can be confirmed either electronically, with documentary evidence, or a combination of both.
Electronic evidence:
When sending supporting documents electronically we will accept scanned copies or photographs sent from your business email. Don’t forget to send one email per case and include the 8-digit mortgage/case number in the subject line, along with supporting documents as attachments.
Documentary evidence:
Where the customer(s) cannot be identified electronically, documentary evidence must be provided. One document from List A and one from List B must be provided.
List A - Government issued Documents | List B - Other Documents |
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Clients buying a new build property may receive an incentive from the builder or developer to purchase the property. This must be declared at the time of application, or later if the incentive changes.
Cash incentives
Cash incentives of up to and including 5% of the purchase price are acceptable up to 90% LTV without affecting the loan amount. For LTVs up to 90% where the value of the cash incentive is greater than 5%, the balance of the incentive above 5% must be deducted from the purchase price when calculating the maximum loan amount. Where the LTV is greater than 90%, cash incentives must be deducted from the purchase price when calculating the maximum loan amount.
We accept the following cash incentives:
Acceptable cash incentives | Houses & Flats up to 90% LTV | Houses over 90% LTV |
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Cashback deals | ![]() | ![]() |
Stamp Duty (Land and Buildings Transaction Tax in Scotland) paid | ![]() | ![]() |
Payment of fees to professionals, such as solicitors and valuers | ![]() | ![]() |
Guaranteed rental payments for a period after completion | ![]() | ![]() |
Gifted deposit from the builder or developer (please note, family gifted deposits are acceptable in line with standard policy and do not need to be deducted from the purchase price) | ![]() | ![]() |
Non-cash incentives
Acceptable non-cash incentives | Houses & Flats up to 90% LTV | Houses over 90% LTV |
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White goods (where not included as standard specification) | ![]() | ![]() |
Carpets and curtains | ![]() | ![]() |
Kitchen upgrade (including tiling and worktops) | ![]() | ![]() |
Bathroom upgrade | ![]() | ![]() |
All electric upgrades (i.e. additional sockets, TV points, etc) | ![]() | ![]() |
Turf and landscaping | ![]() | ![]() |
Part-exchange transactions
Where the builder or developer is purchasing the customer’s existing residential property part-exchange transactions are acceptable. We will accept this in addition to cash and non-cash incentives.
Part-exchange is not available on a Help to Buy: equity loan.
Declaring incentives
Incentives must be clearly set out on the application form.
If the valuer confirms they have seen the CML Disclosure of Incentives form and has quoted the property valuation as net of any incentive above the 5% limit, no further discount applies.
The below examples demonstrate how to calculate the maximum loan when the customer is in receipt of incentives:
House – Purchase price £200,000 with 5% cashback from the builder.
Valuation amount | Purchase price | Net purchase price | VM lend maximum 85% LTV |
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£200,000 | £200,000 | £200,000 | £170,000 |
House– Purchase price £200,000 with 15% cashback from the builder.
Valuation amount | Purchase price | Less 10% incentive (15% – 5%) | Net purchase price | VM lend maximum 85% LTV |
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£200,000 | £200,000 | £20,000 | £180,000 | £153,000 |
Flat – Purchase price £200,000 with £830 rental contribution per month paid by the developer for 2 years (i.e. £19,920 an incentive of 9.96%).
Purchase price | Less 4.96% incentive (9.96% - 5%) | Net purchase price | VM will lend maximum 75% LTV |
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£200,000 | £9,920 | £190,080 | £142,560 |
If the customer is employed on a fixed term contract and earns over £50,000 per year and has no more than a six weeks break between contracts the following income verification must be provided:
Where a contractor is paid via an umbrella / payroll services company, please also provide the last 2 months’ payslips. We will deduct any statutory employer costs (including employer National Insurance contributions and Apprenticeship Levy) and any payroll service costs from the gross pay before multiplying by 46 weeks.
For those contract workers who earn less than £50,000 or are employed on a fixed term / agency basis evidence of a two year track record of this income type must be provided. If the above criteria cannot be satisfied then contractors will be treated as self-employed.
Example of how to calculate income for Contractors:
Therefore affordability will be based on earnings of £480/day which would mean the customer's total gross annual income will be calculated as:
When assessing a Contract Worker for a residential loan (or further borrowing) we will only consider income being used to assess affordability paid in GBP / £Sterling. We will require evidence of this income.
* HMRC SA302's and corresponding Tax Year Overviews are acceptable if printed by HMRC or from your customers online HMRC Account. The Tax Calculation document printed from the customers online account must indicate the tax return is 100% complete for each year evidenced.
For employed and retired customers:
Employment Type | Income Verification Requirements |
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Employed (Standard) | Last monthly payslip or last four weekly payslips.
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Employed (Weekly/Monthly Variable Income) | Last two monthly payslips or last eight weekly payslips.
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Employed (Annually/Half-yearly or Quarterly Variable Income) | Latest P60 or payslip(s) showing the bonus paid.
If bonus is more than the basic pay we need the latest 2 P60s or payslip(s) showing bonus over 2 years. |
Retired | Latest annual pension statement (must be dated within the last 12 months), or latest two monthly pension slips, or latest two monthly bank statements showing pension credits, or latest P60 or SA302 |
*If the loan is greater than £1million we need the last two years P60’s to evidence variable income.
Last two months' bank statements (to correspond with the payslips provided) to evidence salary credits if the customer:
Where your client is unable to provide a copy of the last P60 one of the following substitutes can be used in its place:
Please note the income verification required is determined by the customers employment status. 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.
For more details about employed income types Virgin Money accept and how they are assessed, check out our Employed Income useful guide.
Employment Type | Income Verification Requirements |
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Limited Liability Partnerships
| Last two years' compensation statements (which provide a breakdown of the customer's total remuneration for that particular year), or letter from HR/Finance Director verifying the total remuneration for each of the last two years, or last two years HM Revenue & Customs (HMRC) SA302 and corresponding Tax Year Overviews*
The latest month’s business or personal bank statement showing remuneration received. Bank statements are not required for non-equity partners. |
*HRMC SA302’s and corresponding Tax Year Overviews are acceptable if printed by HMRC or from your customers online HMRC Account. The Tax Calculation document printed from the customer's online account must indicate the tax return is 100% complete for each year evidenced.
Virgin Money require the last two years accounts, or last two years HM Revenue & Customs (HMRC) SA302 and corresponding Tax Year Overviews.*
Virgin Money will consider 100% of the average of the last two years net profit after corporation tax for Self Employed customers, as long as the following conditions are met:
Income - 100% | |
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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.
*HRMC SA302’s and corresponding Tax Year Overviews are acceptable if printed by HMRC or from your customers online HMRC Account. The Tax Calculation document printed from the customer's online account must indicate the tax return is 100% complete for each year evidenced. Please note - If the customer is classed as self employed by way of having a 20% or more shareholding in a Limited Company, HMRC SA302's are not acceptable as income verification.
The maximum loan to income (LTI) is 5x, subject to affordability. The following exceptions apply:
Maximum 4.49x
Maximum 5.5x
The above income multiples are based on our usual allowable types of income, e.g. 60% of bonuses
To understand how much your client may be able to borrow please visit our affordability calculator.
Income - 100% | Variable - 60% |
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For variable pay received annually, six monthly or quarterly, we will use 60% of the most recent year. If the variable income exceeds basic income, we’ll use 60% of the 2 year average (most recent year if lower).
For variable pay received monthly, we will use 60% of the variable pay from the lowest of the most recent two payslips. If the year to date figure is lower, we’ll use 60% of the variable pay showing in the YTD.
Exceptionally, we may be able to use up to 75% of variable income where a 3 year track record of stability is held (2 years if monthly or more regular). This must be agreed with us before applying.
We will accept 50% of income from 2nd Job (including Territorial Army reservist allowance)
For details of how Virgin Money assess acceptable income types, view our Employed Income useful guide.
Virgin Money will not consider the following, non exhaustive list of income:
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If the customer has not been in their current job for the past year then providing they have been in similar employment in the past, and can evidence a consistent level of income from both their current and previous job, by way of their last P60, this income can be taken into consideration.
Residential mortgages are available on an interest only basis up to maximum 75% LTV (65% if repayment vehicle is sale of property).
All of our Buy-to-Let products are available on an interest only basis up to maximum 80% LTV (LTV restrictions also apply, please see Maximum LTV section).
Residential Interest Only key criteria
Repayment strategies
All interest only applicants must have at least one of the following repayment strategies in place, to cover the balance of the loan at the end of the mortgage term. The repayment strategy must be in the name of the applicant(s), and substantiated with documented evidence:
It is the customer's responsibility to monitor the chosen repayment strategy to ensure it is on track to repay the mortgage balance at the end of the term. Periodically we will ask for information on the performance of the repayment plan.
This table shows the evidence required substantiating each repayment strategy, and how we will assess it.
Acceptable Repayment Strategies | Evidence Required | Assessment |
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Managed Investment Plans (including Unit trusts / Open Ended Investment Companies (UK), Investment Bonds (UK), Stocks and Shares ISA (All stocks and shares held in a Stocks and Shares ISA must be FTSE listed. The investment and return must be in Great British Pounds / UK Sterling Only). | Copy of latest projection statement dated within last 12 months. | Allow up to 100% of projected amount using the middle % figure currently 6%. Amount must be equal to or greater than the Virgin Money mortgage. |
Pension (Company or Individual Plan). | Copy of latest statement dated within last 12 months. | Allow 100% of the tax free lump sum (which is 25% of the projected value at retirement age). Amount must be equal to or greater than the interest only element it is being used to cover. |
Sale of mortgaged property | Virgin Money will carry out a valuation of the property. | Must meet agreed lending policy including LTV and minimum equity. |
Sale of other property (Must be located in the UK). | Virgin Money will check property ownership via Land registry check and determine value. A copy of the latest mortgage statement dated within last 12 months is required. | Customer's equity must be equal to or greater than 110% of the interest only element if being used to cover. This is to allow for property fluctuations and sale costs.
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Managed Share Portfolio (Only UK based investments quoted within the FTSE index held in sterling are acceptable). | Copy of share certificates, nominee account statement or confirmation from an authorised stock broker containing evidence of share holdings together with their valuation (must be dated within the last 12 months). | Allow the face value which must be equal to or greater than 110% of the interest only element it is being used to cover. This is to allow for fluctuations in share prices and sale costs. |
Endowment Policy (Both with profits and unit trusts). | Copy of latest projection statement dated within last 12 months. | Allow up to 100% of projected amount using the middle % figure currently 6%. Amount must be equal to or greater than the interest only element it is being used to cover. |
Important Notes:
This will occur where a customer (must be UK resident) joins the mortgage as joint borrower rather than Guarantor, but will not be residing in the property.
They must be able to afford all existing mortgages and credit commitments in addition to the mortgage on the property they are not occupying.
As the property will not be the main residence of one customer, the maximum LTV available is 75%.
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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