News
We’re changing our buy-to-let rental tests
01 February 2021
We wanted to let you know that we’re making some changes to our buy-to-let rental stress tests on Thursday 4 February.
What’s changing
The interest rate stress on 5+ year fixed products will change from 4.50% to 4.50% or product rate +1%, whichever is higher.
The interest rate stress on straight balance swap applications will change from 5.00% to 5.00% or product rate +1%, whichever is higher, across all products.
DIPs submitted after 8pm on Wednesday 3 February will be assessed using our new policy.
Here’s a summary of our BTL affordability policy:
| Application type | Rental income | 5+ year fixed products stressed rate | All other products stressed rate |
|---|---|---|---|
| Purchase | 145% | 4.50% or product rate +1%, whichever is higher | 5.50% or product rate +2%, whichever is higher |
| Remortgage with additional borrowing | 145% | 4.50% or product rate +1%, whichever is higher | 5.50% or product rate +2%, whichever is higher |
| Remortgage straight balance swap | 125% | 5.00% or product rate +1%, whichever is higher | 5.00% or product rate +1%, whichever is higher |
We want to help
If you have any questions, just get in touch with your dedicated Business Development Manager, who’ll do everything they can to help.
The team at Virgin Money
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