Virgin Money loosens buy-to-let criteria

Ryan Bembridge

April 18, 2018

Virgin Money will now accept income to cover rental shortfalls and has lowered its interest stress rates as its looks to widen access to its buy-to-let range.

The lender will now consider personal income to cover a shortfall in rent between 100% and 145% of the mortgage payment, though there is minimum income requirement of £50,000 for this to be used, excluding money from buy-to-let properties.

The lender has also lowered the stress rate on 5-year fixes from 5.24% to 5.00%, though for all other products the stress rate will remain at 5.50%.

For product transfers where there isn’t a capital raise, Virgin will now stress against a rate of 5.50% rather than 5.99%. In this scenario the lender demands an income coverage ratio of 125% rather than 145%.

Andrew Asaam, director of mortgages at Virgin Money, said: “Virgin Money supports a wide range of segments in the mortgage market and that is why we have made a number of enhancements to our buy-to-let policy.

“The rental sector plays an important part in the make-up of the mortgage landscape and we are confident these improvements will be well-received by landlords.”

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