Virgin Money changes its interest-only mortgage criteria
Virgin Money for Intermediaries has changed its acceptance criteria and made it slightly easier for clients to secure one of its interest-only mortgages.
The bank has introduced a maximum loan-to-income multiple of 3.5 for interest-only and part interest and part capital repayment loans, subject to its usual mortgage affordability calculations.
Aaron Strutt, product Manager at Trinity Financial, says: “Virgin has reduced its minimum qualifying income from £100,000 to £50,000. It has also removed the requirement for a minimum property value of £500,000.
“The maximum loan-to-value for residential clients taking a mortgage on an interest-only basis or the interest only element of a part and part mortgage is 70%. Unfortunately the bank does not currently offer interest-only mortgages to first-time buyers.”
In a note to brokers Virgin explained “We understand that interest-only and part and part loans can be a suitable repayment method for a wide range of customers who can demonstrate confidence in repaying their loan at the end of its term, through a clear and evidenced repayment plan.”
To secure an interest-only mortgage call Trinity on 020 7016 0790.
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