We’ve made changes to our lending policy

01 November 2016

At Virgin Money, we are committed to making it easier for our intermediary partners to do business with us. As part of that commitment, we have made changes to our mortgage lending policy for residential and buy-to-let customers.

Flats and Maisonettes

Great news, we have increased the maximum number of storeys we will now accept for flats and maisonettes across the UK to 10.

What’s more, in the following areas of London, we will now accept blocks with an unlimited number of storeys:

  • The City of London
  • Canary Wharf
  • London Boroughs - Camden, Greenwich, Hackney, Hammersmith & Fulham, Haringey, Islington, Kensington & Chelsea, Kingston upon Thames, Lambeth, Richmond upon Thames, Wandsworth and Westminster. 

Where the building has more than 10 storeys, the maximum LTV will be restricted to 80% for all properties in the building.

Lending into Retirement

We have improved our affordability policy for residential applicants borrowing into retirement. If the customer is 10 years or more away from their expected retirement date then affordability will be based on their current income, providing the customer evidences they are making provisions into a pension.

If the customer is within 10 years of either their anticipated retirement date or age 67 (whichever occurs first), affordability will be based on the lower of current income or expected pension income.

Our new policy will allow more applicants to use their current income for affordability.

Our maximum age policy remains unchanged. For all customers and guarantors, the maximum age at the end of the mortgage term is 75 years and 364 days.

Short Leaseholds

We have changed our policy for leasehold properties. We now require a minimum unexpired term of at least 70 years at the point of application.

When will these policy changes take effect?

Our new policy applies to any Decision in Principle (DIP) with immediate effect. Any DIP which has already been approved based on our existing policy will be honoured if converted to a full application within the usual 90 day validity period.

Want to know more?

For full details, view our lending policy or download our A-Z Lending Policy App, and get instant easy access to our policy on the go.

For any other queries you may have, your dedicated Business Development Manager will be happy to help.

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