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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 O-P
An Offer is valid for 26 weeks (six months) from the date of issue.
Offers – new build
An Offer for a new build property is valid for 30 weeks (seven months).
We will be able to provide an Offer extension for 30 weeks (seven months) subject to the application being re-underwritten against current lending policy.
In order to request an offer extension, you must provide the following:
Please note, when assessing a new build Offer extension, your client will not be charged an additional valuation or Application Fee.
Offers – product switching
We allow product switching on pipeline cases, which means you can switch your customer’s previously selected product onto a new product from our new business range available at that time. Here’s some key information -
Please note: We allow product switching on Product Transfer pipeline cases for existing customers too.
*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.
If a customer is anticipating a temporary reduction in their income, for example, when on parental leave, 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 examples below 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 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.
Pension Income
Where the term of the mortgage takes the customer beyond their anticipated retirement age, or the customer is already retired, details of pension income are required.
The maximum age we will consider accepting employed income is age 67 unless the customer declares a lower anticipated age of retirement.
Acceptable pension income paid in GBP / £Sterling is:
The pension scheme must be approved by HM Revenue & Customs (HMRC).
Evidence of Pension Income
Evidence of pension income, and confirmation it is paid in GBP / £Sterling, must be in the form of one of the following:
The pension scheme must be approved by HM Revenue & Customs (HMRC).
Please note, if a pension slip is provided to support the application, and this clearly states what the customer's annual pension is, then it can be accepted in lieu of an annual pension statement.
Pension Contributions
Contributions to Private Pensions, Company pensions and Additional Voluntary Contributions (AVC’s) must be included as expenditure for the purposes of affordability.
See the Expenditure Section for more details.
*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.
Products launched before 12 May 2008
Customers who completed onto products launched prior to 12 May 2008 will be able to port their existing mortgage balance, or a reduced balance, subject to any applicable Early Repayment Charge. If your customer requires additional borrowing to purchase their next property, they will be able to apply for the additional amount at the same rate as their existing product. Applications must fit all lending criteria, including maximum LTV, credit scoring and affordability assessments.
Products launched on or after 12 May 2008
Customers who completed onto products launched on or after 12 May 2008 will be able to port their existing mortgage balance or a reduced balance subject to any applicable Early Repayment Charge.
If your customer requires additional borrowing to purchase their next property, they will be able to apply for a new product for the additional amount from the purchase product range available at that time. The additional borrowing product must be from the same product family as the main loan, i.e., Everyday or Flexible.
Please refer to the Offer documentation issued to your client(s) for confirmation of their terms and conditions when moving home.
Please note, the Cashback incentive offered on selected products is not available to customers who are porting, including when taking additional borrowing.
Where an existing customer is moving home, please call us to complete a Decision in Principle. This includes porting an existing product and taking a new product. All applications must also be made using a paper application.
Procuration Fees
If your clients choose to take an entirely new mortgage product from our current range for all borrowing, or transfer the remaining terms and conditions of their current product to their new property, you will be entitled to the full procuration fee for that product.
Please refer to your club or network for details of our procuration fee package.
Premium leases occur where the tenant pays rental income to the landlord in advance resulting in a long-term rental agreement.
These situations will always be referred to an underwriter where additional conditions may apply.
Virgin Money will consider probationary income where the customer has a track record of income or where permanent status is confirmed by the employer. To establish a track record of employment, the last two years' P60s must be provided.
For applicants classed as a professional sportsperson / entertainer, the following criteria will apply:
Standard Properties
Properties should be of conventional construction.
A property is considered to be of conventional construction if it is built of stone, natural stone, reconstituted stone, cob and flint, modern timber frame, concrete block and/or brick, with either solid or cavity walls that consist of an inner and outer skin. The outer skin will usually be of stone, brick or block. The roof will be of slate, tile, thatch or felt.
The following forms of construction are considered as acceptable:
Leasehold properties must have an unexpired term of at least 85 years at the point of application.
We will lend up to a maximum of 20% of the units in any one block / development.
In all instances, a satisfactory valuation report is required before Virgin Money will confirm a property is acceptable.
We have no maximum acreage but for valuation purposes we will not include any land over 2 acres.
Non Standard Properties
Some properties constructed using non conventional methods of construction may be acceptable to Virgin Money subject to a satisfactory valuation report and valuer comment.
These include properties falling into the following construction types:
If you believe a property is of non standard construction, please contact us for clarification prior to submitting an application.
In all cases, a satisfactory valuation report and positive valuer comment is required before Virgin Money will confirm a property is acceptable.
For full details of our policy criteria for flats and apartments, please view the Flats section.
Unacceptable Properties
The following property types are considered unacceptable for mortgage purposes. This is not an exhaustive list:
Property Issues
The following non exhaustive list refers to the more common property matters which may be raised either within the content of the Mortgage Valuation Report or subsequently by the acting solicitor. These may require further underwriting as part of the processing of a mortgage case.
Where any of these issues may be suspected on a case, please contact your BDM to discuss before submitting your application.
Capital raising is permitted; however, customer(s) cannot borrow additional money for the following:
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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