Virgin Money Update

We’ve improved our affordability

You can now offer more of them the loan amounts they need. Read on and we’ll tell you why.

Advanced affordability

Put simply, we’ve made some improvements to our affordability calculations. This means, for most customers, we can now lend more today than we could last week.

Want to find out how much we could lend? Check out our updated affordability calculator.

Liberating our LTIs

We’ve relaxed our rules and removed restrictions, giving more customers access to higher multiples.

Contractors are no longer limited to 4.49x. Plus, higher earners and customers remortgaging with no additional borrowing now have increased access to our max 5.5x multiple.

Here are our new multiples:

Purchase or remortgage with additional borrowing

• Income under £50,000 – 4.49x
• Income £50,000 to £74,999 – 5x
• Income of £75,000 or more – 5.5x

Max 4.49x LTI at all income levels if any of the following apply:

• Over 85% LTV
• Any part of the mortgage is Interest Only
• Any applicant is self-employed (not including contractors meeting our contractor policy)
• Shared Ownership

To determine the £50k/£75k income levels, and when applying LTI multiples we’ll include the following of the two highest earning applicants: basic pay, 60% of allowable variable income and 100% of pension.

Remortgage with no additional borrowing

• Up to 85% LTV – 5.5x
• Over 85% LTV – 4.49x

Just so you know, for a remortgage with no additional borrowing, income level and self-employment don’t affect LTI limits. The LTI is max 4.49x if any part of the mortgage is interest-only.

For more info, head to our lending criteria.

NEW REMORTGAGE EXCLUSIVES AND BTL FIXED RATE REDUCTIONS

We wanted to let you know that we’re making some changes to selected Virgin Money products. At 8pm on Tuesday 10 October, the following products will be withdrawn.

Remortgage Exclusives with £995 fee – 7 Day Specials

• 60% LTV 5 Year Fixed Rate at 4.90%.
• 70% LTV 5 Year Fixed Rate at 4.95%.

Remortgage Exclusives with £995 fee

• 60% LTV 2 Year Fixed Rate.
• 70% LTV 2 Year Fixed Rate.
• 60% LTV 7 Year Fixed Rate.

Freedom to Fix with £995 fee

• 65% LTV 2 Year Everyday Freedom to Fix Tracker will be increased by 0.07%, at 5.55%.

If you’re applying for one of these products on behalf of your customer, please send us the application by 8pm today.

On Wednesday 11 October, we’re launching the following new products and making selected reductions across our range.

Remortgage Exclusives with £995 fee and £250 cashback

• NEW 60% LTV 2 Year Fixed Rate will be launched at 5.40%.
• NEW 70% LTV 2 Year Fixed Rate will be launched at 5.49%.
• NEW 60% LTV 5 Year Fixed Rate will be launched at 4.95%.
• NEW 70% LTV 5 Year Fixed Rate will be launched at 4.98%.
• NEW 60% LTV 7 Year Fixed Rate will be launched at 4.95%.

BTL Remortgage & Purchase Exclusives with £2,195 fee

• 50% LTV 2 Year Fixed Rate will be reduced by 0.06%, at 5.44%.
• 60% LTV 2 Year Fixed Rate will be reduced by 0.06%, at 5.49%.
• 50% LTV 5 Year Fixed Rate will be reduced by 0.21%, at 4.99%.
• 60% LTV 5 Year Fixed Rate will be reduced by 0.21%, at 5.01%.

• Exclusive BTL Portfolio fixed rates with £2,195 fee will be reduced by up to 0.26%.

BTL Remortgage & Purchase Exclusives with 3% fee

• 60% LTV 2 Year Fixed Rate will be reduced by 0.15%, at 4.72%.
• 75% LTV 2 Year Fixed Rate will be reduced by 0.15%, at 4.77%.
• 60% LTV 5 Year Fixed Rate will be reduced by 0.15%, at 4.82%.
• 75% LTV 5 Year Fixed Rate will be reduced by 0.15%, at 5.12%.

• Exclusive BTL Portfolio fixed rates with 3% fee will be reduced by 0.15%.

Purchase Exclusives with £1,295 fee

• 65% LTV 2 Year Fixed Rate will be reduced by 0.06%, at 5.34%.
• 85% LTV 2 Year Fixed Rate will be reduced by 0.02%, at 5.67%.
• 90% LTV 2 Year Fixed Rate will be reduced by 0.05%, at 5.70%.
• 90% LTV 5 Year Fixed Rate will be reduced by 0.06%, at 5.22%.

Purchase Exclusive fee-savers

• 65% LTV 2 Year Fixed Rate will be reduced by 0.02%, at 5.58%.
• 85% LTV 2 Year Fixed Rate will be reduced by 0.08%, at 5.91%.
• 90% LTV 2 Year Fixed Rate will be reduced by 0.09%, at 6.01%.
• 85% LTV 5 Year Fixed Rate will be reduced by 0.04%, at 5.23%.
• 90% LTV 5 Year Fixed Rate will be reduced by 0.04%, at 5.40%.

• Purchase Exclusive £1m+ fixed rates will be reduced by 0.05%.

Product Transfer

• Selected product transfer fixed rates will be reduced by up to 0.14%, with rates starting from 4.99%.

The end dates will move to February of the relevant year.

You can find our current rates in our Mortgage Update. If you’ve got any questions, you can get in touch with your Business Development Manager or dedicated Mortgage Service Team.