"That’s good for your customers, because it means more will get the loan amounts they need – and it’s good for you, because it could mean you’re able to help more customers."
Virgin Money has launched a new loan-to-income policy.
As part of the changes, Virgin has removed its interest-only cap, so the repayment method no longer features in its LTIs.
In a note to brokers, Virgin said: "That’s good for your customers, because it means more will get the loan amounts they need – and it’s good for you, because it could mean you’re able to help more customers."
As part of the new policy, for purchases or remortgage with additional borrowing, LTIs will be capped at 4.49x for income under £50,000, 5x for income between £50,000 and £74,999, and 5.5x for income of £75,000 or more.
A maximum 4.49x LTI, whatever the income, will apply for LTVs over 85%, for any self-employed applicant (not including contractors meeting Virgin's contractor policy), and shared ownership.
For remortgage with no additional borrowing, maximum LTIs are 5.5x up to 85% LTV and 4.49x over 85% LTV.
Virgin noted that when a customer is remortgaging with no additional borrowing, their income and self-employment don’t affect LTI limits.
