To make things as straightforward as possible, it would be great if you have the following to hand for all applicants:
- Income details
- UK address history for the last 3 years
- Details of your monthly expenditure (your bank statements will come in handy here)
- Details of any credit commitments (including payments, balances and interest rates)
Check our mortgage product details to see if an application fee is applicable.
There may be some other fees involved, including valuation fees, product fees and legal costs. We’ll discuss this when you apply.
Full details of any fees will also be in your Key Facts Illustration.
We’ll always do our best to help, but there are a few circumstances where we wouldn’t be able to offer you a mortgage:
- If you have ever had a CCJ (satisfied or unsatisfied)
- If you have ever been made bankrupt or had an IVA
- You have been party to a mortgage where the property has been taken into possession (including pending) either voluntarily or enforced
- You have ever had any defaults, satisfied or unsatisfied, with a total value of greater than £500
- Arrears are recurring or likely to recur
Up to 4 people can apply for a mortgage with us.
We're happy to accept an application as long as you're aged 68 or below at the time of applying for the mortgage.
The minimum term is 7 years.
The maximum term is 35 years for a residential mortgage and 25 for a Buy-to-Let (BTL) mortgage.
We don't use income multiples here at Virgin Money. Instead, we use an affordability model to confirm how much we’re able to lend.
To see how much we could offer you, simply put your details through our affordability calculator.
We'll accept 100% of the income sources below when paid in Great British Pounds (GBP)/£Sterling:
- Gross basic salary from an employed role
- Mortgage subsidy
- Permanent shift allowance
- Maternity income
- Housing Allowance
- Large city weighting
- Car allowance
- Agency/fixed term employment (as long as you have a 2 year track record of this income type)
- Disability Living Allowance (DLA)
- Personal Independence Payment (PIP)
- Pension tax credits
- Employment and support allowance
- Disabled persons tax credit
- Maintenance (must have been in place via a court order for 2 years and be in place for the entire mortgage term)
We'll also accept 50% of the following income sources:
- Monthly commission
- Monthly/quarterly/half yearly/annual bonus
- Annual /half yearly bonus
- Performance related pay
- Non-permanent shift allowance
- Second job
If you're self employed we'll take an average of the last 2 years net profit, when evidenced by:
- Accountant’s certificate
- Inland Revenue Tax Assessment
If net profits are increasing, we'll take the average share of net profits over the past 2 years.
If the net profit is decreasing during that period, we'll use the lower figure, provided the business is on track to make the same or more profit in the next financial year.
For limited businesses, we can also include any director remunerations (salary).
Your first mortgage payment will be due on the 7th of the month following completion.
The main criteria to be eligible for a BTL with us is:
- The maximum loan to value is 75%
- The minimum income (excluding what you receive from BTL properties) needs to be £25,000 per annum. If your application is in joint names, the combined minimum income will also be £25,000
- The rental income must cover 145% of the mortgage interest and this will be calculated in one of the following ways:
- All products, with the exception of five year fixed rate, will be calculated on a notional rate of 5.50%.
- Five year fixed rate products, will be calculated at the higher of either the Buy-to-Let Variable Rate (currently 4.74%) or the Product Rate.
- We don't accept BTL applications for first time buyers. For joint applications, at least one applicant must have been an owner occupier for 6 months or more on the date of decision, and we may ask for evidence of this
For more information on all things Buy-to-Let, check out our useful guide.
After you’ve applied for your mortgage, you just need to sign and return the application form and pay any applicable fees.
Once returned to us, your application will be assessed by an underwriter, and we'll keep you updated throughout the process.
Once your application has been returned and any applicable fees have been paid, your valuation will be instructed.
We expect this will be instructed, completed and returned to us in just 5 working days.
That’s absolutely fine, providing the mortgage term ends before you turn 76.
There are a couple of points to bear in mind if you’re applying for a residential mortgage:
- We'll only accept income from your employment up to the age of 67 (or your planned retirement age if it’s before you turn 67)
- If the term extends beyond that age, we'll need evidence of your pension arrangements to support the application as this will determine the loan amount we can offer you
The income we use to assess your application will depend on how long you have left before you return to work:
- If you’re due to return to work within the next 3 months, we’ll use your return to work salary. Please note, we'll need confirmation of this from both you and your employer
- If you’re off work for another 4-12 months, we'll still use your return to work salary, but we'll need evidence of how you’re covering the shortfall in your income to pay the monthly mortgage payments (e.g. savings). We'll also need confirmation of your return to work date and the terms and conditions, from both you and your employer
The maximum LTV for customers taking a mortgage on an interest only basis, or the interest only element of a part and part mortgage is 70% for residential and 75% for BTL mortgages.
Residential mortgages can be taken on a part interest and part repayment basis, but where borrowing exceeds 85% LTV the whole mortgage must be taken on a full repayment basis.
To take out a Virgin Money residential mortgage on an interest only or part and part basis, your total household income must be at least £50,000 and you must have a suitable repayment strategy in place.
If you're planning on selling another property to repay the mortgage this will restrict the loan to 60% LTV.