Virgin Money reviews buy to let mortgage lending criteria.
Virgin Money has reviewed its buy to let mortgage lending criteria.
The stress test the lender applied to its 5 year fix was set previously at a rate of 5.24%. This has now been reduced to 5%.
For landlords looking for a straight balance swap remortgage, the stress test here has also been reduced by Virgin from 5.99% to 5.5%.
A stress test rate of 5.5% will be used on all of Virgin’s other mortgages from their buy to let range.
Other changes include the consideration of landlords’ personal income in the event of rent shortfalls occurring. However, in order for applicants to qualify for this, they must have a personal income of no less than £50,000 that is separate from income generated by their buy to let business.
If you’d like further information on this or any other buy to let mortgage from UK lenders, contact Deal Direct.
Please note that we are regulated to offer independent mortgage advice; however, we are not regulated to offer general financial advice. If you want to discuss the suitability of a property as an investment, you will need to contact an independent financial adviser.
Buy to let mortgage applications from:
- applicants whose intention is to benefit from house price growth
- applicants whose intention is to benefit from rental income
- applicants who are letting to buy
will be treated as a normal buy to let and not as a consumer buy to let. In addition, their subsequent remortgage applications will also be treated in the same manner.
Speak to a Deal Direct advisor on 0800 048 8828.
