Questions and answers

Frequently asked questions and answers for intermediaries

Submitting business

Click on any of the questions below to see the answers and links to related pages or documents.

How can I arrange a product switch?

If you wish to request a product switch after submission, please call your dedicated Regional Service Team.

Please note that once you have submitted an application for a particular product, we will reserve funding for your client’s mortgage at the interest rate you have selected. After this point, you will only be allowed to change products if the subsequent choice comes from the same range of products.

Once a product range is replaced, your client will not be allowed to switch to a product from a later range.

Applications received after a product withdrawal date will not receive the former product rate unless the case has been received and then referred following the Decision In Principle process for further underwriting consideration.

How can I submit supporting documents to you?

Please send all supporting documentation to us using one of four options:

  • You will be prompted within VMO to upload your documents once you have submitted your application.
  • You can upload supporting documents to VMO at any time once your application has been submitted.
  • Use the Secure Document Transfer link which we will email to you following completion of an application. Secure Document Transfer links are unique and case specific and should only be used to upload supporting documents for the case referenced in the email you receive.
  • Use the existing unsecure method by emailing your documents to docs@virginmoney.com for new business and PTdocs@virginmoney.com for product transfer business.

We will accept scanned copies or photographs of documents. For more information, view our helpful sales aid.

Alternatively documents can be sent via post:

Mortgage Processing, Virgin Money plc, Jubilee House, Gosforth, Newcastle upon Tyne, NE3 4PL

How do I get a Decision in Principle (DIP)?

The easiest way to obtain a DIP is to use our Virgin Money Online (VMO) facility.

If you would like to use VMO service you must be registered to submit mortgage business with us. If you have not already done so you should complete our Online Registration Form.

If you are already registered you can call your dedicated Regional Service Team who will provide you with a link to download the software.

How do I obtain a Mortgage Illustration?

The easiest way to obtain an Illustration is to use our Virgin Money Online facility, VMO.

If you would like to use the Virgin Money Online service you must be registered to submit mortgage business to Virgin Money. If you have not already done so you should complete our Online Registration Form.

If you are already registered you can call your dedicated Regional Service Team who will provide you with a link to download the software.

How do I register to use Virgin Money Online (VMO)?

If you would like to use the Virgin Money Online service you must be registered to submit mortgage business with us. If you have not already done so you should complete our Online Registration Form.

If you are already registered you can call your dedicated Regional Service Team who will provide you with a link to download the software.

How do I transfer a mortgage application to a new property?

When a purchase falls through (residential or BTL) and the client wants to transfer their application to a new property the applicants details can be transferred to a new application.

Please use the “pre-populate” function within VMO or MTE to transfer the existing details from the DIP to a new case.

Please call your dedicated Regional Service Team to let us know the new application number and we will transfer the original product, application fee and any unutilised fees.

The existing application will then be cancelled.

If the original case has already been cancelled, we will allow the product and fees (where applicable) to be transferred up to six weeks after the date of cancellation.

When we receive the application it will be re-assessed and you will be advised of our documentary requirements in the normal way.

How do I submit a BTL Portfolio landlord application?

Submit your application in the normal way i.e. VMO or MTE. If the application is for a new purchase, or a remortgage / product transfer with additional borrowing, you need to provide us details of your client's property schedule which must be uploaded to the BTL Hub.

If you are already registered for our BTL Hub, login and follow the online instructions. Or register for the BTL Hub here.

All other supporting documentation, including the Business Plan and Cashflow, can be sent to us in one of three ways:

  1. You will be prompted within VMO to upload your documents once you have submitted your application.
  2. You can upload supporting documents to VMO at any time once your application has been submitted.
  3. Use the Secure Document Transfer link which we will email to you following completion of an application. Secure Document Transfer links are unique and case specific and should only be used to upload supporting documents for the case referenced in the email you receive.
I am experiencing an issue whilst using Virgin Money Online (VMO) who should I contact?

We have a dedicated team of fully trained staff to help you with any queries that you may have when using our new online services. Please call your dedicated Regional Service Team for all your support requirements.

Some of my personal details have changed how do I update you?

You can change your personal details by accessing the online Amendment Form.

Where can I find supporting documents?

If you are missing a form or want to download the latest product information you can access a wide range of documentation on our Useful Downloads page.

Who do I contact if I am having problems registering?

If you experience any problems whilst trying to register to do business with us, please call your dedicated Regional Service Team who will provide you with a link to download the software.

Lending policy

Click on any of the questions below to see the answers and links to related pages or documents.

What is your Buy To Let Variable Rate?

The Virgin Money Buy To Let Variable Rate is 5.19% (effective from 1 October 2018 for existing customers).

What is your Standard Variable Rate (SVR)?

The Virgin Money SVR is 4.99% (effective from 1 October 2018 for existing customers).

What is the Online Affordability Calculator (OAC)?

The amount Virgin Money will lend to a customer is dependent on an assessment of their affordability based on income and expenditure.

The online Virgin Money Affordability Calculator should be used before submitting any application as it will provide you and your clients with an accurate and consistent illustrative borrowing figure, which is tailored to their personal circumstances.

To avoid delays in processing your application please ensure the Monthly Essential and Regular Expenditure form is fully completed and sent to Virgin Money, where requested.

What is the longest mortgage term available?

The longest term you can arrange on a residential and BTL mortgage is 35 years.

For residential mortgages, the maximum age at the end of the mortgage term is 75 years and 364 days.

For BTL mortgages, the maximum age at the end of the mortgage term is 85 years and 364 days.

What is the maximum LTV for interest only mortgages?

The maximum LTV for residential customers taking a mortgage on an interest only basis is 75%. For residential customers taking a part and part mortgage, the maximum LTV is 85%, of which up to 75% LTV can be on interest only. Where residential borrowing exceeds 85% LTV, the whole mortgage must be taken on a full repayment basis.

The maximum LTV for BTL customers taking a mortgage on an interest only basis is 80%. For BTL customers taking a part and part mortgage, there is no restriction on the maximum interest only element.

What is the maximum number of applicants for a mortgage application?

The maximum number of customers per application is four.

In these circumstances income and affordability is assessed on the income of the two highest earners.

What is your maximum loan amount for an individual property?

The maximum loan on residential applications is £2 million and £1 million on BTL applications.

For BTL the total maximum exposure with Virgin Money is £3 million.

What is your policy regarding Interest Only repayment strategies on residential applications?

The customer must have a credible repayment strategy 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 customer(s) and be from one of the following:

  • Endowment Plan
  • Managed Investment Plan
  • Personal Pension Plan
  • Sale of mortgaged property – maximum 65% LTV. Minimum £300,000 equity required. Lending into retirement not allowed if repayment vehicle is sale of property.
  • Sale of other property – to cover 110% of the interest only element (maximum 65% LTV on residential). We will check property ownership and determine value. A copy of the latest mortgage statement dated within last 12 months is required. Virgin Money may ask the customer or intermediary at their own expense to provide an independent valuation of the property, which must be carried out by an F/M/ARICS registered valuer.
  • Managed share portfolio (must cover 110% of the interest only element at the time of application)

You will need to provide us with documented evidence of the repayment strategies. Periodically, we will ask your client to provide us with information on the performance of the repayment plan.

What properties do you class as unacceptable for mortgage purposes?

Unacceptable Properties

The following property types are considered unacceptable for mortgage purposes. This is not an exhaustive list:

  • Houses in multiple occupation (HMO)
  • Leasehold properties must have an unexpired term of at least 85 years at the point of application.
  • Mobile Homes/Caravans/Park Homes/Houseboats
  • Working Farms, Smallholdings and Houses subject to an Agricultural Occupancy Restriction
  • Affordable Housing properties (except Shared Ownership)
  • Uninsurable properties
  • Properties built using high alumina cement or Mundic properties where the property is not graded A1, A2 or A3 following a Petrographic Test
  • Flats above shops/commercial premises (exceptions apply)
  • Freehold Flats (except Tyneside flat scenario)
  • Properties with a gross internal floor area of less than 30m2 not including balconies or covered external areas
  • Studio Flats
  • Landlocked properties
  • Properties constructed using Large Panel Systems (LPS)
  • Live/Work Units
  • Properties adapted or altered for commercial use
  • Prefabricated Reinforced Concrete (PRC) Homes not repaired under an approved scheme and / or where the adjacent property has not been repaired.
  • Properties with Overage Clauses (except Custom Build)
  • Properties with Pre-emption clauses (except Shared Ownership)
  • Properties with ongoing structural issues
  • Properties with more than five acres of land as part of the title
  • Properties where power lines or electricity supply apparatus are located directly over and/or on the site which are not for domestic supply to the subject property
  • Properties with more than one annexe
  • Properties not recommended as suitable security by the valuer
  • Timber frame properties constructed between 1900 and 1969 for the private or public sector.

Property Issues

The following non exhaustive list which 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.

  • Adverse comments regarding the property’s suitability for mortgage purposes
  • Proximity to high voltage electrical supply apparatus (including overhead/nearby power cables, sub stations, transformer houses and communications masts)
  • Adverse findings within a mining search (e.g. presence of a mineshaft in proximity to the property)
  • Flooding
  • HS2 or other large infra structure projects
  • Adverse findings within an enviro search where obtained (e.g. reference to contaminated land that has not been subject to remediation)
  • Section 106 Agreements affecting a property
  • Reference to hazardous materials including asbestos, methane gas and radon gas
  • Deficiencies in the title to the property
  • Short leases i.e. properties with unexpired lease terms of less than 70 years at the point of application will not be considered acceptable security

Where any of these issues may be suspected on a case, please contact your BDM to discuss before submitting your application.

Products

Click on any of the questions below to see the answers and links to related pages or documents.

How long is your Offer valid for?

Our Offer is valid for 26 weeks (six months) from the date of issue.

Offers – new build

Our Offer for a new build property is valid for 30 weeks (seven months). If an extension is required beyond this time, a further 30 weeks (seven months) extension can be granted subject to the application being re-underwritten against current lending policy.

Offers – custom build

Our Offer for a custom build mortgage is valid for 26 weeks (six months) from the date of issue.

For further details, please view the Offers section of our A-Z Lending Policy.

Do you accept incentives when purchasing a new build property?

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 without affecting the loan amount. 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 85% cash incentives are not accepted.

We accept the following cash incentives up to 85% LTV:

  • 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
  • Maximum exposure of the residential units within any one development is 20%

Non-cash incentives

The following incentives are acceptable to Virgin Money without impacting the loan amount:

  • 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 accept this in addition to cash and non-cash incentives.

Part-exchange is not available on a Help to Buy: equity loan.

Help to Buy: equity loans

If a property is being purchased as part of the Help to Buy: Equity Loan Scheme incentives of any kind (cash and non-cash) cannot be more than 5% of the value of the property. For full details, please view the Help to Buy: Equity Loan Scheme of our A-Z Lending Policy.

For further details, please view the Incentives section of our A-Z Lending Policy.

Do you support the Help to Buy: equity loan scheme?

We are pleased to support the government Help to Buy Equity Loan schemes in England, London, Scotland and Wales, offering a range of residential mortgages for customers looking to purchase a new build home with a smaller deposit. For full details of each scheme visit the A-Z Lending Policy.

What is a Flexible mortgage?

Our flexible mortgage range is ideal for your clients looking to secure more flexibility. As their lives change, so too can their mortgage, allowing them to choose whatever works for them at the time, including unlimited overpayments, the opportunity to apply for payment holidays, underpayments and to borrow back previous overpayments. Please note all flexible features must be applied for and are subject to an affordability assessment and the terms and conditions of your client’s mortgage and Virgin Money’s agreement.

For further details of the flexible features we offer, please visit our Product Information page.

What is an Everyday mortgage?

Our Everyday product range contains our lowest priced mortgage rates. As well as offering low rates, these products also offer additional features that entitle your client to make overpayments of up to 10% of their outstanding balance per calendar year and to apply for payment holidays. Please note that all features are subject to terms and conditions.

For further details please visit our Product Information page.

What is your criteria for Buy-to-Let and Consumer Buy-to-Let loans?

The following conditions must be met:

  • Evidence of a minimum personal combined gross income of £25,000 is required (excluding income received from BTL properties). We will accept non GBP / £Sterling income as part of this. Where personal income is used for affordability, a minimum combined gross income of £50,000 is required.
  • The rental income must cover 145% of the mortgage interest and this will be calculated in one of the following ways:
    • All products, with the exception of five year fixed rates, will be calculated at the product rate +2% or a notional rate of 5.50%, whichever is higher.
    • Five year fixed rate products, will be calculated at 5.00%.

If there is a rental shortfall between 100% and 145%, calculated at a notional rate of 5.50%, we will accept the customer's 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 a notional interest rate of 5.50% across all products.

  • Minimum age requirement of 21. For joint applications at least one borrower must be 21 or over and additional borrowers must be 18 or over
  • Maximum LTV for repayment and interest only loans is 80%
  • No minimum loan size and maximum loan size of £1million on any one property. Where the LTV is greater than 75% the maximum loan size is £350,000.
  • Maximum borrowing with Virgin Money is £3 million or five properties
  • Maximum number of mortgaged BTL properties with any lender we will accept is ten
  • Minimum property value for loans up to 75% LTV is £50,000. For loans greater than 75% LTV, the minimum property value is £100,000
  • The following Tenancy Agreements must be in place:
    • In England and Wales an Assured Shorthold Tenancy (AST) is required as a condition of the loan. This must be set up within three months of completion and must not exceed 36 months in duration. We also accept Department for Communities and Local Government (DCLG) tenancy agreement.
    • In Northern Ireland an Uncontrolled Tenancy agreement is required as a condition of the loan, which must be set up within three months of completion and must not exceed 36 months in duration.
    • In Scotland a Private Residential Tenancy is required as a condition of the loan with effect from 1 December 2017. This must be set up within three months of completion. Prior to 1 December 2017, an AST was acceptable. There is no maximum time limit on these tenancies.
    • In England and Wales if the rental income is less than £100,000, an AST is required. If the rental income is greater than £100,000 then a standard tenancy agreement may be put in place.
    • The property must be let on a single AST with a maximum of four tenants
    • Letting to tenants in receipt of housing benefit is acceptable.
    • We will only accept properties which are in a readily lettable condition at application

    Virgin Money considers a property as ready to let if the following can be met:

    • The property is not in need of essential repairs and / or refurbishment
    • Its overall condition in respect of repair and fittings is to a standard which would be expected by the majority of potential tenants

    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:

    • Available to individuals only, not Limited Companies
    • Not available where customer intends to let the property back to the seller
    • We will lend up to a maximum of 20% of the units in any one block / development
    • We do not accept BTL applications for first time buyers
    • Applicants must be an owner occupier, and have had owner occupier status for at least six months on the date of decision (this applies to at least one applicant on joint applications). We may request evidence of this
    • Where a customer is remortgaging their main residence onto a BTL product a simultaneous completion must be made on a new residential property
What is your new build policy?

We define new build as a property where construction is completed and/or the property is first occupied, in the last 24 calendar months.

  • Maximum LTV on new build houses is 90% for Residential and 75% for BTL (Help to Buy is available for first and next-time buyers with smaller deposits looking to purchase a new build home)
  • Maximum LTV on new build flats is 75% for Residential and BTL
  • Requirement for the acting solicitor to confirm the property has been satisfactorily completed and that a New Build Warranty acceptable to Virgin Money is in place
  • We will lend up to a maximum of 20% of the units in any one block / development

Clients buying a new build property may receive an incentive to purchase the property. All incentives must be declared at the time of application. For further details, please view the Incentives section of our A-Z Lending Policy.

Please note the Offer for a new build property is valid for 30 weeks (seven months). If an extension is required beyond this time, a further seven month extension can be granted subject to the application being re-underwritten against current lending policy. The customer will also be required to choose a new mortgage product from those currently available.

Our Offer for a Shared Ownership mortgage is valid for 26 weeks (six months). If an extension is required beyond this time, a further six month extension can be granted subject to the application being re-underwritten against current lending policy.

Our Offer for a custom build mortgage is valid for 16 weeks (four months). If an extension is required beyond this time, a further two month extension can be granted subject to the application being re-underwritten against current lending policy.

For further details, please view the Offer extensions section of our A-Z Lending Policy.

Do you offer custom build mortgages?

Yes, these are now offered in partnership with BuildLoan to help your customers realise the dream of building their own home. To find out more, view our handy Sales Aid Link opens in a new window 

Where can I find details of your current mortgage products?

You can use our Mortgage Finder to locate the most suitable mortgage product to match your clients needs.

Alternatively a full list of all our mortgage products and exclusive mortgage products available to all intermediaries registered with a Virgin Money National Account can be found on our Useful Downloads page.

Who can apply for an Intermediary Exclusive product?

Our Intermediary Exclusive products are available to all intermediaries registered with a Virgin Money National Account.

For details of the latest intermediary exclusives please visit our Useful Downloads page.

Registration & other

Click on any of the questions below to see the answers and links to related pages or documents.

Where can I find your valuation/survey fees?

Our valuation/survey fee scale can be found in our A-Z lending policy.

What will my procuration fee be?

If you have any queries regarding your procuration fee please contact us by emailing procuration.fees@virginmoney.com.

How do I register to do business with Virgin Money?

You can complete the online Registration Form.

One of our Intermediary Support Team will then be in touch to get you up and running within 2 business days.

You will receive e-mail confirmation when the registration process is complete, once you've received that you'll be able to submit business with us.

How do I register for the BTL Hub?

If you are submitting a BTL Portfolio landlord application and don’t have access to the BTL Hub you will need to register.

Only one intermediary from each firm needs to initially register the firm. They can then add new members, who will also then be able to add colleagues to the system.

Once you are registered you can start to submit your client's property schedule.

What does High Net Worth mean?

High Net Worth is a term used to describe an individual with a minimum annual income of £300,000 or minimum net assets of £3m. We use this term for mortgage purposes. Where there are two applicants, one individual must meet the definition in their own right.

What does Mortgage Professional mean?

A mortgage professional is an individual who works, or has recently worked as a professional in the home finance sector for at least one year and requires knowledge of home finance transactions or services. If they understand the risks involved in applying for a mortgage, they can be introduced on an execution only basis. However if the mortgage professional wishes to take a joint mortgage with another party who is not a mortgage professional, then both parties will have to be advised.

What evidence do you require for High Net Worth and Mortgage Professionals?

We require the following evidence that an applicant meets the requirements:

  • High Net Worth: Please send us a signed written statement from a suitably qualified professional adviser of the applicant confirming the high net worth definition is met.
  • Mortgage Professional: Please send us credible evidence that the applicant(s) meet the definition of a mortgage professional. This may include for example a mortgage adviser where we would need to see their professional qualification e.g. CeMAP.
What is a Material Change?

A material change can be one of the following though this is not an exhaustive list:

  • Valuation causes LTV decrease
  • Valuation causes LTV increase and fails affordability
  • Valuation causes LTV increase but passes affordability
  • Valuation causes LTV increase which exceeds the product maximum
  • Change of product
  • Change to loan amount
  • Adding or removing a party to the mortgage
  • Change in the mortgage term
  • Change in repayment type and/or the repayment vehicle
  • Change from freehold to leasehold (ground rent & service charges are assessed within affordability)
  • Change in income or expenditure
  • Change in product fee selection from ‘pay separately’ to ‘add to loan’

Any cases which involve a material change will continue to be referred back to you.

What is an Execution Only Form?

This is a form the applicant(s) sign to acknowledge they have not received advice and will not benefit from the protection of a recommendation, based on a full assessment of their needs and circumstances.

This must be received for all execution only applications you submit and be signed by all applicants. You are responsible for creating the confirmation form and gaining the applicants' signatures.