Virgin Money amends interest-only residential lending policy
- A minimum loan size of £300,000 introduced for residential interest-only lending
- Maximum loan to value for interest-only remains at 70%
- No impact on existing customers with interest-only loans
Virgin Money announces that it is amending its policy for new interest-only residential mortgage lending.
Virgin Money will now only accept interest-only cases with a minimum loan size of £300,000. The same policy will also apply for part capital repayment and part interest-only cases.
Interest-only and part repayment/part interest-only Decisions in Principle (DIPs) on the current policy will be honoured, subject to the usual 90 day validity period. The revised policy will be applied to all DIPs submitted after 11pm on 8 January 2013.
Existing Virgin Money customers who want to port their mortgage to a new property, or who want to remortgage to a new Virgin Money product, are able to do so on their existing interest-only arrangements providing there are no material changes to the loan (such as an increase in loan size). Existing interest-only customers who want to increase their loan size can apply for the additional lending on a repayment basis if their loan is below £300,000.
There are no changes to Virgin Money’s interest-only policy on buy to let loans.
Pete Ball, Product and Commercial Director at Virgin Money said “While some lenders have chosen to withdraw from interest-only lending completely over recent months, we believe that it remains an important part of the mortgage market for customers who can demonstrate confidence in repaying their loan at the end of its term through a clear and evidenced repayment plan. We have updated our lending policy, although there are no changes for existing Virgin Money customers who can continue their mortgage under their current arrangements.”
Tel: 0191 279 4676
NOTES TO EDITORS
About Virgin Money
- Virgin Money provides savings, mortgages, credit cards, pensions, investment and protection products to over four million customers
- Virgin Money’s business ambition is to make “everyone better off” – this philosophy underpins our approach to business by offering good value to customers, treating employees well, making a positive contribution to society and delivering a profit to shareholders
- Virgin is the official sponsor of the London Marathon, the biggest annual fundraising event in the world. Virgin Money leads the London
- Marathon sponsorship with the ambition to help runners raise £¼ billion over 5 years and will use its infrastructure, online capability and financial expertise to deliver that through Virgin Money Giving
Virgin Money plc registered in England and Wales under company number 6952311.
Registered Office: Jubilee House, Gosforth, Newcastle upon Tyne, NE3 4PL (Main Switchboard 0845 600 8401). Authorised and regulated by the Financial Services Authority.