To make things as straightforward as possible, it would be great if you have the following to hand for all applicants:
- Income details
- If employed you will need: Gross annual salary, bonus & overtime
- If you are self-employed: last 2 years net profit/directors salary
- UK address history for the last 3 years
- Details of your monthly expenditure PDF opens in a new window (your bank statements will come in handy here)
- Details of any credit commitments (including payments, balances and interest rates)
- Pension payments from your payslip
Check our mortgage product details to see what fees are 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 Mortgage 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 any unsatisfied CCJ, or CCJs totalling more than £500, either declared or detected, even if they are satisfied.
- 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
- If you have any defaults totaling between £500 and £2,000 which are not satisfied and/or are less than 3 years old.
- If you have defaults totaling more than £2,000.
- Arrears are recurring or likely to recur
Up to 4 people can apply for a mortgage with us.
For a residential mortgage the term has to end before the customer(s) 76th birthday and for BTL mortgages before their 86th birthday.
The minimum term is 7 years.
The maximum term is 35 years for a residential mortgage and 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.
To see if we'd lend to you without a full credit check, why not try our eligibility checker.
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 (See section 'I'm on parental leave; can I still apply for a mortgage?'?)
- Housing Allowance
- Large city weighting
- Car allowance
- Agency/fixed term employment/Zero Hours contract worker (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)
- War Disablement Pension
We'll also accept 60% of the following income sources:
- Monthly commission/overtime
- Monthly/quarterly/half yearly/annual bonus
- Annual /half yearly bonus
- Performance related pay
- Non-permanent shift allowance
We'll also accept 50% of the following income sources:
- Second job
If you're self employed we'll take an average of the last 2 years net profit, when evidenced by:
- For limited companies the last two years’ full accounts will be required and we will request a letter from your accountant.
- For sole traders and Partnerships last two years’ HMRC SA302's, along with corresponding tax year overviews. We will also request last three months bank statements (personal or business) to evidence turnover.
Please note: We do not use dividends when assessing income for self employed applicants.
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 80% or 75% for BTL portfolio landlords
- 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. Where personal income is used for affordability, a minimum combined gross income of £50,000 is required.
- The rental income must cover 145% of the mortgage interest and this will be calculated in one of the following ways:
- Two and three year fixed rate products will be calculated at the product rate +2% or a notional rate of 5.50%, whichever is higher.
- Five year and longer fixed rate products will be calculated at a notional rate of 4.50%.
- If there is a rental shortfall between 100% and 145%, we will consider your personal income to cover this. Personal income is not considered for BTL portfolio landlords, LTVs greater than 75%, or where the term extends beyond 75 years of age.
- If remortgaging a buy-to-let property and additional borrowing is not required, this will be calculated at a rental income of 125%, plus stress test interest rate of 5.00% across all products.
- 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
- Letting to tenants in receipt of housing benefit is acceptable.
- For landlords with four or more mortgaged buy-to-let properties visit our Buy-to-Let Portfolio Landlords page
There are three scenarios where we will consider a BTL mortgage for you where you are a non-homeowner (subject to maximum exposure with Virgin Money of £3 million or five properties).
- Customer is in tied accommodation - We require documentary evidence from the employer to confirm the accommodation is contractual
- Customers are re-mortgaging an existing BTL property
- Customer has existing BTL mortgage(s) with Virgin Money and are buying a new BTL property
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 your 76th birthday and for BTL mortgages before your 86th birthday.
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 you to confirm in writing the date you will return to work and the salary you will receive.
- 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 you to confirm your return to work date.
The maximum LTV for customers taking a mortgage on an interest only basis is 75% for residential mortgages and 80% for BTL mortgages (or 75% for BTL portfolio landlords).
On a residential application we can go to a maximum of 85% on a part interest only and part repayment basis, as long as the interest only element does not exceed 75%.
On a residential application if you're planning on selling another property to repay the mortgage this will restrict the loan to 60% LTV.
Residential mortgages which exceed 85% 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 £75,000 (including 100% of additional income such as bonuses, overtime etc) and you must have a suitable repayment strategy in place.