Virgin Money has announced the launch of a new exclusive 80% LTV mortgage range and announced rate increases of up to 0.12% across its purchase and remortgage products.
Available from today, the new 80% LTV purchase range includes two-year fixed rates from 4.69% with an £895 fee or 4.95% fee-free, while five-year fixes start at 5.51% and 4.62% respectively. All products come with a free valuation.
In addition, Virgin has increased selected purchase and remortgage rates.
In Virgin's exclusive purchase range, selected Fix and Switch fee-free rates at 80% and 95% LTV have increased by 0.09%.
Across its standard purchase range, selected 90% and 95% LTV mortgages, including shared ownership products, have risen by up to 0.12%.
For remortgage, 80% LTV five-year fixed rates have increased by 0.02%.
Aligned lending into retirement policies
In addition, Virgin has aligned its Virgin Money and Clydesdale Bank lending into retirement policies.
The lenders will now use the customer’s 71st birthday or their chosen retirement age, whichever is earlier.
For customers who need a mortgage term that extends into retirement, the income Virgin uses for its affordability checks depends on how far from retirement they are.
If retirement more than 10 years away, Virgin and Clydesdale will use their current income for our affordability checks and will need to see proof that they’re paying into a pension.
For retirement less than 10 years away or for borrowers who are already retired, affordability checks will be based on their current income or retirement income, whichever is lower.
The maximum age for Clydesdale Bank mortgages has also increased from 75, to 75 and 364 days.
For self-employed customers, the banks may be able to use their current income up to their 76th birthday depending on their line of work.
Downsizing for interest-only is only available up to the customer’s 71st birthday or chosen retirement age, whichever is earlier, even if they’re self-employed.
