In addition, Virgin has enhanced the criteria on its 90% LTV products, with the maximum property value increasing from £400,000 to £500,000 and the maximum term increasing from 25 years to 30 years.
The lender has also amended its loan-to-income policy for both Virgin Money and Clydesdale Bank.
On Thursday 4 March, its maximum loan-to-income will be reduced to 4.49x where the LTV is more than 80%. This excludes remortgage applications with no additional lending, and its existing loan-to-income cap of 4.49x where the LTV is more than 85% remains in place.
At the same time, Virgin is increasing the maximum loan-to-income for all interest-only and part-and-part applications to 4.49x.
In addition to basic pay, 100% of pension and allowable benefit income will be used in the loan-to-income calculation.
DIPs submitted after 8pm on Wednesday 3rd March will be assessed using the new policy. Customers already in the pipeline will not be affected by the changes.
