Virgin Money has changed its lending criteria to make it easier to qualify for its interest-only mortgages.
The bank has added the sale of a mortgaged property as an acceptable repayment vehicle for applications up to 65% loan-to-value (LTV). The mortgage term cannot run past the client's retirement age and they need to have a minimum of £300,000 equity in their property.
Virgin has increased the maximum loan-to-income multiple from 3.5x salary to 4x salary on interest-only and part and part mortgages. The maximum loan-to-value on residential interest-only and part and part loans have increased from 70% LTV to 75% LTV.
Applicants will need a combined minimum gross income of £75,000, and this includes any additional income such as bonuses or overtime etc.
Aaron Strutt, product director at Trinity Financial, says: “Many of the biggest lenders are offering interest-only so there is a lot of competition to attract borrowers.
“Accord Mortgages has one of the more attractive policies, the lender requires applicants to have £200,00 equity in their property, and they do not have a minimum income to qualify.”
Call Trinity Financial on 020 7016 0790 to secure an interest only mortgage