Virgin refreshes B2L range
The new range includes a fee free 4.69% 3-year fixed rate which is reduced by 0.90%, a 2.89% 2-year tracker which is reduced by 0.10% and an intermediary exclusive 2.89% 2-year with a reduction of 0.30% and a £2,495 product fee.
In addition, Virgin Money has announced plans to revise its policy for new, interest-only residential mortgage lending (including part repayment/part interest-only lending) in response to feedback from its intermediary partners.
Virgin Money will remove the current minimum loan size of £300,000 for interest-only residential lending and instead introduce a minimum property value of £500,000 and a minimum gross income requirement of £100,000 in total for applicants (including bonuses). In addition, Virgin Money will no longer offer the option of interest-only lending to First Time Buyers.
Virgin Money continues to believe that residential interest-only mortgages remain an appropriate option for more experienced customers who can demonstrate confidence in repaying their loan at the end of its term through a clear and evidenced repayment plan.
As part of these changes, Virgin Money will also no longer accept the sale of a customer’s primary residence or the use of Cash ISAs as a repayment vehicle.
Other suitable repayment vehicles will continue to be accepted, subject to the usual criteria, including; investment plans, personal pension plans, endowment policies, sale of a property other than primary residence and a share portfolio.
There are no changes for existing interest-only loans, which are not impacted by the planned changes. Virgin Money’s interest-only policy for buy-to-let will also remain unchanged.
After the implementation of the changes on 9 December, Virgin Money will honour any interest-only or part repayment/part interest-only Decisions in Principle (DIP) that have been approved under the previous interest-only policy for a period of 90 days from the date of the DIP.
Anthony Mooney, director of financial services at Virgin Money, said “We are delighted to announce the launch of our new range of competitive buy-to-let products, which underlines the importance we place on this segment of the market.
“We are also announcing some changes to our residential interest-only lending policy that will take effect on 9 December.
“We are making these changes in response to feedback from our intermediary partners, and given our experience that the vast majority of interest-only customers have higher incomes and property values. We remain of the view that interest-only remains an important option for more experienced borrowers who have a clear and demonstrable repayment plan and our revised policy reflects that.”
Mooney added: “Whilst interest-only mortgages are an important part of the mortgage market, they represent around 10% of new mortgages at Virgin Money.
“The wider product range that appeals to the vast majority of Virgin Money mortgage customers remains unaffected by these changes.”