Virgin Money mortgage lending criteria
We have not verified the information with the lender. You should not rely on this information. If you have an area of concern then please ask us.
Virgin Money mortgage lending criteria
Mortgage Advances
Up to £1,000,000
Notes
Illustration Type = ESIS.
Mortgage is Portable
Transferring this product to a different property
You have the possibility of transferring this product to a different property. You may apply to transfer it at any time. This
process is also known as ‘porting’.
If you do make an application to transfer this product to a new property, we will assess your financial circumstances and
we will carry out a valuation of the new property. Both you and the new property must meet our lending requirements
that are in place at the time you make the application.
In addition, the following requirements must also be met:
you must sell the property and repay this loan in full;
you must be purchasing the new property; and
you must complete the new loan within 3 months of repaying this loan.
If you do transfer this product to a different property within 3 months of repaying this loan, we will refund any early
repayment charge you have paid. However, if the new loan is for less than the amount you owe on this loan at the time
of the transfer, we will not refund any early repayment charge paid on the difference between the two loans. We will
explain this in greater detail should you make such an application.
If you need to borrow more money at the same time as transferring this product to a different property, we will discuss
the options available to you at that time.
Existing customers buying a new property (not porting)
If you sell the property and buy a new property with the help of a new loan on a new product from us within 3 months of
repaying this loan, we will refund half of any early repayment charge you pay to us when you repay this loan.
For Interest Only and Part and Part Loans minimum gross income requirement of £75k per mortgage application
(including 100% of additional income e.g. bonuses, overtime).
The maximum loan to income multiple we will accept for interest only and part and part loans is 4, based on allowable
income i.e. basic income plus proportion of additional income permitted by policy
You will need to provide us with documentary evidence of the repayment vehicles. Periodically, we will ask your client to
provide us with information on the performance of the repayment plan.
Virgin Money accepts the following repayment vehicles for Residential and BTL mortgages: Sale of mortgaged property –
ONLY where this is not your main residence, sale of another property, a managed investment plan, pension, managed
share portfolio (must provide 110% cover) or endowment policy. All of the above (with the exception of sale of property)
must have been in place for at least 12 months
Where sale of mortgaged property is being used as the repayment vehicle the maximum LTV is 65%.
Where the repayment vehicle is sale of another property, Virgin Money will arrange an Automated Valuation Model
(AVM) of the property and carry out a land registry search. In the event this does not provide us with enough confidence
that the value of that property will provide 110% cover for the amount borrowed, we will ask your client to provide us with
an independent valuation completed by a RICS registered valuer (at their own cost).
Once a customer has had their mortgage with us for 7 years, a loyalty discount is available, this will be at least 0.25% off
Virgin Money plc's Standard Variable Mortgage Rate for the rest of the life of the loan. This is providing that mortgage
payments are up to date. They do not continue to benefit from a special rate (such as a product discount, a guaranteed
rate, or fixed rate) or other product benefit (such as a cashback) and they are not within an Early Repayment Charge
period.
When porting your existing mortgage, cashback will not be available either on your existing product, or any new
borrowing.
Payment Holidays Allowed. Payment holidays are periods of time where we do not need you to make your monthly
payment. You can take a payment holiday with our consent.
If you apply for a payment holiday, we will assess your financial circumstances. You must meet our lending requirements
that are in place at the time you make the application.
In addition, the following will also apply:
you are limited to a maximum of 3 payment holidays in any 12 month period;
you must have made at least 9 full monthly payments on this loan for each payment holiday you request; and
if you go into arrears on the loan or make an underpayment, the number of payments you have made will be reset to
zero for the purposes of requesting a payment holiday.
You can make overpayments of up to 10% at any time. You may be charged an early repayment charge as detailed in
the Early repayment section of this Illustration.
An overpayment is any amount you pay to us that is more than your monthly payment. It can be a lump sum payment or
a regular payment.
Capital Rest Period : Daily
Repayment Types
Repayment Yes
Endowment 75% LTV
PEP 75% LTV
Pension 75% LTV
Interest only (no RV) No
With Profits 75% LTV
Unit Linked 75% LTV
ISA 75% LTV
Split Repayment 85% LTV
Fees
Arrangement : varies
Booking : None
Early Repayment Charges
varies 10% capital repayments allowed per year without penalty
Higher Lending
None
Valuation
Basic:
up to £60,000 - £112
up to £100,000 - £132
up to £150,000 - £163
up to £200,000 - £188
up to £250,000 - £214
up to £500,000 - £275
up to £750,000 - £331
up to £1,000,000 - £377
up to £1,500,000 - £510
up to £2,000,000 - £663
up to £2,500,000 - £817
up to £3,000,000 - £970
You will need to pay a fee to register the mortgage, the lender has not specified this value.
Early repayment charge applies to the outstanding secured loan balance at the time of redemption. Any overpayments in
excess of the 10% annual allowance will also be subject to the early repayment charge.
For loans where the advance exceeds £1million, an additional desktop valuation will need to be carried out for a fee of
£75.
Product Fee (where applicable) can be paid separately (due at point of application) or added to the mortgage.
Lenders Conveyancing Fee - £150.00 Payable on completion.
Exit Fee - £50.00 Payable on early redemption.
Telegraphic Transfer - £30.00 Payable on completion.
Acceptable Property Types
Freehold Flat No
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop Yes
Maisonette Yes
Studio Flat Yes
Flying Freehold No
Thatched Yes
Timber Framed Refer
Concrete Refer
Agricultural Tie No
Flat Over 4 Storeys Yes
Listed Building Yes
Right to Buy
Max Discount% 100
Max Market Value% 95
New Build acceptable. New Build acceptable.
New Build Flats 80% and New Build houses up to 90% LTV
Construction
Properties to be of conventional construction built in stone, concrete block or brick with solid or cavity walls. Roof of
slate, tile, thatch or felt.
Non conventional construction - subject to specific requirements detailed in Lending Policy
Tenure
Freehold, Leasehold, Commonhold & Absolute Title (Scotland)
Leasehold properties must have an unexpired term of at least 85 years at the point of application.
New Build
Defined as ‘property where construction is completed or the property first occupied in the last 24 months’
Max 80% LTV for flats & 90% Houses.
NHBC or equivalent warranty required if property construction completed in last 10 years
Flats
Where the building has more than 10 storeys, the maximum LTV will be restricted to 80% for all flats in the block.
Ex LA, MOD and Housing Assoc. flats maximum 7 storeys
Over 85% LTV, flats and maisonettes must be in buildings of no more than 4 stories and must not be ex local authority or
ex MOD.
Flats in blocks above 5 storeys must be lift served
Must be leasehold/Absolute Ownership. Leasehold with share of the freehold acceptable
Converted flats acceptable subject to all of above & Planning consents
Deck access - No ex LA, MOD or Housing Associations.
Self Build
No staged releases, property construction must be complete and property habitable
New Build Warranty or Professional Consultants Certificate required.
BTL
All property types Maximum LTV 80%
Minimum property value for loans up to 75% LTV is 80,000. For loans greater than 75% LTV, the minimum property
value is £100,00
Maximum loan £1 Million.
Maximum Portfolio £3 Million, 10 properties.
Property must be in Habitable condition
Property to be readily Lettable
Accepted Locations : England, Scotland, Wales, N Ireland
Requirements
Bank Statements 1 months
At Least 3 Months Pay Slips Yes
P60 No
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References Yes
Insurance
Buildings Conditional
Conditions On Loan
Min Loan
Max Loan £1,000,000
Max Portfolio of BTL Loans £2,000,000
Min Age 18 years
Max Age 76 years
Min Term 7 years
Max Term 35 years
For Interest Only and Part and Part Loans minimum gross income requirement of £75k per mortgage application
(including 100% of additional income e.g. bonuses, overtime).
The maximum loan to income multiple we will accept for interest only and part and part loans is 4, based on allowable
income i.e. basic income plus proportion of additional income permitted by policy.
The maximum age for applicants is 75 years and 364 days at the end of the mortgage term.
REFER TO LENDER FOR LET TO BUY.
You must declare on the application if the customer has had any of the following:
Court Order for non-payment of debt
Mortgage, rent or loan arrears
Refusal of a mortgage or credit
Repossession where they were party to the mortgage
You must declare on the application if the customer has had any of the following:
Court Order for non-payment of debt
Mortgage, rent or loan arrears
Refusal of a mortgage or credit
Repossession where they were party to the mortgage
Will treat applications from foreign nationals who hold permanent right to reside or settled/pre-settled status the same as
British and Irish Nationals. Applicants must have been resident in the UK for the last 3 years. Will not lend to Foreign
Nationals living overseas or non British or Irish nationals who do not hold permanent right to reside or settled/pre-settled
status.
Identity Verification
A customer's identity can be confirmed either electronically, with documentary evidence, or a combination of both.
Electronic evidence:
• One active Voters Roll 'hit' and one active credit item - at current address
• Two active credit items - both at current address
Documentary evidence:
Where the customer(s) cannot be identified electronically, documentary evidence must be provided. One document from
List A and one from List B must be provided.
List A:
- Valid passport.
- Valid photo card driving licence (full or provisional, as long as the photo and licence are valid).
- Full old-style driving licence issued before 1998.
- Shotgun licence or Firearms certificate.
- National identity card (if you are a non-UK national).
- HM Revenue & Customs letter (coding confirmation/assessment letter/tax credit) quoting your National Insurance
Number.
- Local Authority Housing Benefit letter to you confirming your benefits at time of issue.
- State or Local Authority Educational grant (e.g. educational grant) letter.
- Department for Work & Pensions letter confirming your benefits or pension entitlement at time of issue.
- Current Northern Ireland Electoral ID Card
- Immigration Status Document (ISD) / Biometric Residence Permit (BRP)
List B:
- Current bank statement, credit / debit card statement or mortgage statement issued to your home address (not Virgin
Money)
- Utility bill (e.g. gas, electric, water, home telephone bill - we can’t accept mobile phone bills) no more than 3 months old
- Local Authority Council Tax demand letter or statement
Cash incentives of up to and including 5% of the purchase price are acceptable up to 90% LTV without affecting the loan
amount.
For LTVs up to 90% where the value of the cash incentive is greater than 5%, the balance of the incentive above 5%
must be deducted from the purchase price when calculating the maximum loan amount.
Where the LTV is greater than 90%, cash incentives are not acceptable and therefore must be deducted from the
purchase price when calculating the maximum loan amount.
Sale of mortgaged property acceptable as repayment vehicle (max 65% LTV)
Min £300k equity will be required where repayment vehicle is sale of mortgaged property
Maximum 90% LTV where other residential mortgages are in the background (e.g. second/holiday home), provided the
new property is to be the main residence.
No LTV cap where there are BTL mortgages in the background. Our standard LTV policy rules now apply.
Your property must be adequately insured under an acceptable buildings insurance policy.
Foreign Citizens Refer
Ex-Patriates Not Accepted
Income
Based on Income > 0
5 + 5 or 5 joint < 85% LTV
4.49 + 4.49 or 4.49 joint < 95% LTV
Min months in current position none
Min months in continuous service none
Min no. of years accounts 2
Average years taken to calculate income 2
Will consider declining profit Refer
Outgoings
For variable pay received annually, six monthly or quarterly, we will use 60% of the most recent year. For customers who
are more reliant on bonus income and it exceeds basic annual salary we will use an average of the last two years' bonus
payment: or latest bonus payment if the income has decreased.
Where an employed customer is designated as furloughed, their income will not be used in the affordability assessment.
Self-employed customers will also need to provide their last 3 months business bank statements to evidence continued
turnover.
For all residential loan applications the income being used to assess affordability must be paid in GBP / £Sterling. Virgin
Money will require evidence of this income.
The amount Virgin Money will lend to a customer is dependent on an assessment of their affordability based on income
and expenditure. Please refer to Virgin Money's online affordability calculator at www.virginmoneyforintermediaries.com
to obtain an accurate maximum borrowing figure based on your clients' individual circumstances.
The income verification differs depending on credit score - refer to Virgin Money.
Customers with LTV greater than 70% (including all applications for first time buyers and where the property is worth less
than £100,000):
Employed (Standard Income) - Last monthly payslip or last four weekly payslips.
Employed (Variable Income) - Last two monthly payslips or last four weekly payslips .
Self Employed:
For Limited Company Directors the last two years’ full accounts will be required. We will also request an accountant’s
covering letter on your behalf. For Sole Traders and Partnerships, last two years’ HMRC SA302's accompanied by the
corresponding Tax Year Overviews and three months’ bank statements will be required to evidence turnover.
Retired - Latest annual pension statement (must be dated within the last 12 months), or latest two monthly pension slips,
or latest two monthly bank statements showing pension credits, or latest P60 or SA302 and corresponding Tax Year
Overview (acceptable if printed by HMRC or from your customers online HMRC Account. The Tax Calculation document
printed from the customer's online account must indicate the tax return is 100% complete for each year evidenced).
Customers with LTV up to and including 70%:
Loans greater than £500,000 available to all applicants with an accept score, subject to underwriter approval and a
satisfactory affordability assessment.
For customers who are in a probationary period or employed for less than 6 months need to evidence consistency of
earnings over 2 year period OR provide evidence of income in a “similar line of work” over 2-year period.
Maintenance is an acceptable source of income, subject to confirmation via a court order that it will be paid for the term
of the loan and must have been in place for at least 2 years.
If net profits are increasing - Average share of net profits over the last 2 years will be used.
If net profits have decreased - The most recent year will be used.
Contract Workers – Income Verification For contract workers with gross income greater or equal to £50,000.00:
•Copy of 3 months bank statements
•Copy of current and previous contract covering a 12 month period
•Where less than 3 months remaining on the contract then evidence of renewal must be provided
•If contracting for less than 12 months a copy last two years P60’s to evidence in a similar line of work
For contract workers with gross income less than £50,000.00:
•Contract to be provided to cover a 2 years period
•3 months bank statements
•Where less than 3 months remaining on the contract then evidence of renewal must be provided
Contractors falling inside IR35 are acceptable.
Use of a payroll service (umbrella) company is acceptable.
Bank statements must evidence receipt of the full contract value. If a lower amount is received please provide a detailed
explanation of any deductions. Where a contractor is paid via an umbrella / payroll services company, please provide the
last 2 months’ payslips. We will deduct any statutory employer costs (including employer National Insurance contributions
and Apprenticeship Levy) and any payroll service costs from the gross pay before multiplying by 46 weeks.
A maximum loan to income cap of x4.49 applies where any applicant is a Contractor.
Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft NOT Taken into account
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education Taken into account
Extra Income:-
Other Income - Guaranteed Add 60% to income before multiply
Other Income - Regular Add 60% to income before multiply
Other Income - Irregular No
Investment Income No
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments Add 100% to income before multiply
Non Contributory Pension No
Car Allowance Add 100% to income before multiply
Remortgage Max LTV Max% increase
Remortgage Not Available
Adverse Credit
CCJs/Defaults : Not accepted.
Arrears : Not accepted.
Bankruptcy/IVAs : Bankruptcy/IVA not accepted.
Repossessions : Not accepted.
A credit check will be made on all applicants and the loan will be declined where an adverse credit history is registered.
In addition, credit scoring will be used as part of the decision-making process. Applicants should have a strong credit
history and this will be assessed during our underwriting process.
If a customer has any adverse credit then their application will be subject to assessment, but just so you know here are
some of the situations where we won't be able to help:
Where someone has had 2 months' arrears on an item of credit within the last 6 months.
Where someone has had arrears with a value of 3 months' payments on a mortgage, secured loan or unsecured loan in
the last 2 years.
Where someone has had more than 2 defaults, or total defaults of more than £500 in the last 3 years or more than
£2,000 in the last 6 years. This applies whether or not they are currently satisfied.
Where someone has had any defaults of any value in the last 6 years which are currently unsatisfied.
Where someone has had a CCJ, IVA or Bankruptcy in the last 6 years. This applies whether or not they are currently
satisfied / discharged.
- The Lender follows the general principles of the Council of Mortgage Lenders' Statement of Practice on Handling
Arrears and Possessions, including :
a) with your co-operation, developing a plan with you for dealing with your financial difficulties and clearing the arrears,
consistent with both your interests and those of the Lender.
b) possession of your property will be sought only as a last resort when attempts to reach alternative arrangements with
you have been unsuccessful.