Virgin Money enhances its new build mortgage policy
- Builder’s cash incentives of up to 5% will now be accepted
- The purchase of a customer’s existing home under a part-exchange scheme will now be allowed
- Open new build mortgage offers can now be extended for a further six months
Virgin Money has announced improvements to its new build mortgage policy, to bring additional flexibility for people who are looking to buy a new build property.
The three key enhancements to Virgin Money’s new build policy are:
- Builder’s cash incentives of up to 5% of the purchase price or mortgage valuation (whichever is lower) will now be accepted.
- Any cash incentives greater than 5% will be deducted from the lower of the purchase price or valuation for the purposes of assessing maximum loan size.
- There is no change to the existing policy for acceptable non-cash incentives.
- The purchase of a customer’s existing residence by a builder or developer under a part-exchange scheme will now be permitted as part of a mortgage application.
- New build mortgage offers will continue to be valid for six months, with a new option to extend open offers for a further six months, where the construction of the property is not completed, subject to there being no changes in the customer’s circumstances.
The changes to the policy apply to all new applications submitted from Thursday 11 June 2015.
Peter Rogerson, Virgin Money’s Commercial Director for Mortgages said: "New build is an important segment of the housing market that Virgin Money is keen to support. Following engagement with a number of large builders and specialist new build mortgage intermediaries, we have made these enhancements to our mortgage policy to provide additional flexibility for people buying a new build property."
Details of Virgin Money’s new mortgage product range are available at www.virginmoney.com.
Virgin Money Press Office:
0191 279 4676
NOTES TO EDITORS
About Virgin Money
- Virgin Money provides savings, mortgages, credit cards, current accounts, pensions, investment and protection products
- 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 our shareholders
- Virgin Money is the official sponsor of the London Marathon, the biggest annual one-day fundraising event in the world. Virgin Money has helped London Marathon runners raise over £¼ billion, including funds raised through Virgin Money Giving the not-for-profit online fundraising service, since 2010.
- The information contained in this press release is intended solely for journalists and should not be used by consumers to make financial decisions. Any consumer interested in learning more about this product should visit www.virginmoney.com/mortgages for full terms and conditions.
Virgin Money plc - Registered in England and Wales (Company No. 6952311). Registered Office - Jubilee House, Gosforth, Newcastle upon Tyne NE3 4PL. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.