Virgin Money enhances new build and adverse credit criteria

Virgin Money has announced a series of enhancements to its lending criteria, including increased new build LTVs, a simplified bonus policy, and an updated approach to adverse credit.

Related topics:  Mortgages
Rozi Jones
28th October 2021
Virgin Money

Virgin has increased its maximum residential LTVs to 90% for new build houses and 80% for new build flats.

For shared ownership, Virgin will still lend up to 95% of the share of the property being purchased, including on new builds.

For LTVs up to 85%, the lender will accept builder’s cash incentives of up to 5% without impacting the loan. Where the LTV is greater than 85%, cash incentives must be deducted from the purchase price.

For bonuses, affordability calculations using annual, six-monthly or quarterly bonus payments for employed applicants are now based on the latest year’s bonus, at a rate of 60%.

Virgin no longer requires a bonus to have been received after 2 December 2020, and only needs to use a two-year average (or more recent year if lower) where the variable pay exceeds basic income.

Virgin has also increased its maximum term at 95% LTV to 35 years, which means the maximum term for all of its mortgages is now 35 years.

Additionally, Virgin has reviewed its lending policy to cater for more borrowers with minor adverse credit and historical debt.

More like this
CLOSE