In terms of the larger loans, Virgin said it only expects this "to impact a very small proportion of our lending and we continue to offer competitive loan amounts to higher earning customers across the country".
A source told Financial Reporter that the changes would impact less than 1% of Virgin's lending.
Virgin said that other changes would increase affordability for its clients.
Changes include a more tailored approach for single applicants, recognising their lower level of household expenditure when assessing affordability.
It has also refined its approach to affordability assessment for clients with small amounts of unsecured debt, to help more clients who have credit cards or loans alongside their mortgage.
For clients with an income above £40k, Virgin will take into consideration their higher levels of disposable income when assessing affordability.
For Help to Buy: Equity Loans, Virgin will now calculate government fees as part of \ client’s monthly financial commitments at 3% of the equity loan, compared to 4% previously.
A Virgin spokesperson said:
"We have made some slight tweaks to our affordability policy. We have listened to feedback from our intermediary partners and made a number of changes to the way we assess affordability and calculate the loan amount we offer to customers for residential mortgage applications.
"The changes mean we will better meet customer needs in terms of the borrowing amount they require, while continuing to lend in a safe and responsible way and without compromising credit quality."
