Virgin Money introduces buy-to-let top slicing and cuts stress rates

Virgin Money has announced a number of enhancements to its buy-to-let policy, including considering a landlord's personal income to cover any shortfall in rent between 100% and 145% of the mortgage payment.

Related topics:  Mortgages
Rozi Jones
19th April 2018
Virgin Money

Top slicing will be calculated at an interest rate of 5.50% with a minimum personal income requirement of £50,000, excluding income received from buy-to-let properties.

Additionally, the interest stress rate on five-year fixed rate products has been reduced from 5.24% to 5.00%. For all other products the stress rate will remain at 5.50%.

The straight balance swap stress rate has also been reduced from 5.99% to 5.50%.

Last month, Virgin Money launched a new £750 cashback incentive on its intermediary exclusive buy-to-let range, available for a limited time to support landlords coming to the end of their existing deals this spring.

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