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Virgin Money Lending criteria

Virgin Money Lending criteria

Virgin Money - Buy to let Lending criteria

Notes: The following information may contain errors. We have not verified this information with the lender.

Ask your broker to confirm any aspects that are important to you. The main features of this mortgage will be confirmed in the Key facts Illustration. Please ask your broker for a Key facts Illustration

Mortgage Product


Advances
Up to £1,000,000

Notes
Mortgage is Portable
Provided that Virgin Money plc. are willing to accept a mortgage application from you in the future Virgin Money plc. will allow you to transfer the remainder of this mortgage product to your next property. If Virgin Money plc. allow you to transfer this mortgage product the following conditions will apply:
You must be selling this property and purchasing another property as your home and complete the new loan within three months of repaying this loan.
If you do not repay the loan on this property on the same day that you complete the loan on your next property then any applicable Early Repayment Charge set out above will be payable on that day. Provided that you then complete the loan on your next property within three months of that day any Early Repayment Charge paid will then be refunded in full.
If the new loan is for less than the amount required to repay the mortgage on this property, you will be required to pay any applicable Early Repayment Charge on the difference between the two amounts.
If the value of your next property is less than this property, you may not be able to transfer the remainder of the loan.
Additional borrowing will not be available on this mortgage product.
If you require additional borrowing to purchase your next property, you will be able to apply for a new product for the additional amount upon the terms of the porting product range available at that time.
As an alternative to transferring the remainder of this mortgage product to your next property, you can apply for a new mortgage upon the terms of the product range available at that time. If you complete the new loan within three months of repaying this loan Virgin Money plc. will refund half of any applicable Early Repayment Charge.


- Mortgage is NOT for First time buyers


- PLEASE NOTE THAT THIS PRODUCT IS NOT AVAILABLE TO EXISTING VIRGIN MONEY PLC CUSTOMERS WHO WISH TO CHANGE THEIR EXISTING MORTGAGE DEAL WITHOUT MOVING HOME.


We will assess your clients ability to repay any revised mortgage balance and associated monthly payment, based on their individual circumstances at the time. This will include an affordability assessment, which may require income verification. The use of flexible features remains subject to Virgin Money plc’s prior agreement.


Rental income must be able to cover at least 125% of the mortgage interest, at a notional rate of 5.99% or payrate, whichever is higher.
Minimum property valuation of £40,000. Maximum total exposure £3 million, for exposures over this refer to lender.
Buy to Let products are not available to corporate bodies. Maximum of 4 applicants.


Minimum income £25,000.

Buy to Let products are not available to first time buyers. For joint applications, at least one applicant must have been an owner occupier for at least 6 months on the date of decision, and evidence may be requested.

If remortgaging on to a Buy to Let product a simultaneous completion must be made on a new residential purchase product.
Borrower must have assured shorthold tenancy agreement.


This mortgage includes a facility for additional secured borrowing. You can apply for additional borrowing at any time. Approval will be subject to your circumstances and lending criteria.

When porting your existing mortgage, cashback will not be available either on your existing product, or any new borrowing.


Payment Holidays Allowed. You may apply for 1 month payment holiday for every 9 consecutive full monthly payments you make. The maximum payment holiday period is 3 months, which can be applied for once you have made 27 consecutive full monthly payments.
The number of consecutive payments is reset to zero if you do not make a full monthly payment in the month it is due, or we agree for an underpayment to be made.
Interest will continue to be charged during a payment holiday and you will be advised of your revised monthly mortgage payment which will apply following your payment holiday. Taking a payment holiday will also increase the outstanding balance upon which future loan interest charges are calculated.
When deciding if we allow a payment holiday, we will assess your ability to repay the revised total mortgage balance and the associated monthly payments, based on your individual circumstances at the time. This will include an affordability assessment, which may require income verification. All payment holidays are subject to Virgin Money plc's prior agreement.

A Cashback will be paid to your nominated Solicitor/Licensed Conveyancer by BACS on completion of the Loan.

During the Early Repayment Charge period you are allowed to make overpayments of up to 10% of the outstanding balance in each calendar year without incurring an Early Repayment Charge. In the year that your mortgage product commences, the 10% allowance will be calculated from the original loan balance. In subsequent years, the 10% allowance will be calculated from the balance as at the 31st December of each calendar year.

If, during the Early Repayment Charge period, you make overpayments of more than 10% of the outstanding balance in any calendar year, an Early Repayment Charge will be payable on the amount repaid that is in excess of the 10% allowance.

For example, if your outstanding balance was £100,000 at 31st December, you would be entitled to make overpayments of up to £10,000 in the next calendar year without incurring an Early Repayment Charge. If you overpaid by £12,000 in that year, you would be charged an Early Repayment Charge on the £2,000 that is above the annual allowance.

Please note that the annual 10% overpayment allowance cannot be carried forward from one calendar year to the next.

Following receipt of an overpayment, your outstanding balance and the interest charged will be recalculated with immediate effect. Please note that for an overpayment made by cheque, interest is adjusted two business days after we process the cheque.

If you make an overpayment by Direct Debit, or an overpayment of less than £500 by another payment method, your contractual monthly payment will not be recalculated.

However, if you make an overpayment of £500 or more, by a method other than Direct Debit, your contractual monthly payment will be recalculated. We will write to you to confirm your new contractual monthly payment, which will apply from the first of the following month. If you wish to leave your contractual monthly payment unchanged to further reduce your outstanding mortgage balance, you will need to contact Virgin Money to set up a payment arrangement. Any payment arrangement currently applied to your account will be unaffected.

To make a regular monthly overpayment to reduce your outstanding mortgage balance, you will need to contact Virgin Money plc to set up a payment arrangement.

There are no restrictions on making overpayments after the Early Repayment Charge period has ended.

Buy to Let : Accepted
Let to Buy : Refer
Capital Rest Period : Daily

Repayment Types
Repayment Yes
Endowment 75% LTV
PEP 75% LTV
Pension 75% LTV
Interest only (no RV) 75% LTV
With Profits 75% LTV
Unit Linked 75% LTV
ISA 75% LTV
Split Repayment 85% LTV

Fees


Arrangement : £varies Can be Added
Booking : None

Early Repayment Charges
varies, 10% capital repayments allowed per year without penalty

Higher Lending
None

Valuation
Basic:
upto £60,000 - £112
upto £100,000 - £132
upto £150,000 - £163
upto £200,000 - £188
upto £250,000 - £214
upto £500,000 - £275
upto £750,000 - £331
upto £1,000,000 - £377
upto £1,500,000 - £510
upto £2,000,000 - £663
upto £2,500,000 - £817
upto £3,000,000 - £970


Homebuyers:
upto £60,000 - £270
upto £100,000 - £311
upto £150,000 - £352
upto £200,000 - £398
upto £250,000 - £444
upto £500,000 - £510
upto £750,000 - £561
upto £1,000,000 - £612
upto £1,500,000 - £817
upto £2,000,000 - £1021
upto £2,500,000 - £1225
upto £3,000,000 - £1531

Min Valuation £40000
Early repayment charge only applies on full redemption.
£99 Application Fee payable upfront, non-refundable.
Early repayment charge applies to the outstanding secured loan balance at the time of redemption. Any overpayments in excess of the 10% annual allowance will also be subject to the early repayment charge.
For loans where the advance exceeds £1million, and additional desktop valuation will need to be carried out for a fee of £75.

A mortgage exit fee of £50 applies if the mortgage is redeemed or ported before the term ends. This will be charged on redemption of the mortgage to cover necessary administrative work carried out by Virgin Money.


Higher Lending Charges are calculated on the difference between 75% of the value of your home and the amount you wish to borrow. Added fees will not be included in this calculation.
Lenders Conveyancing Fee - £150.00 Payable on completion. Legal fees due to your solicitor for acting on Virgin Money plc's behalf in setting up this mortgage. This fees are payable at the time your mortgage starts and are not usually refundable. The figure quoted is an estimate and relates only to this part of the legal work. You should ask you solicitor for further details.
Application Fee - £99.00 Payable upfront. non-refundable
Mortgage Exit Fee - £50.00 Payable on redemption. A mortgage exit fee of £50 applies if the mortgage is redeemed or ported before the term ends. This will be charged on redemption of the mortgage to cover necessary administrative work carried out by Virgin Money.

Acceptable Property Types


Freehold Flat No
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop Refer
Maisonette Refer
Studio Flat No
Flying Freehold No
Thatched Yes
Timber Framed Refer
Concrete Refer
Agricultural Tie No
Flat Over 4 Storeys Refer
Listed Building Yes

Max Discount% 100
Max Market Value% 95
New Build acceptable. Where valuation or purchase price is greater than £500,000, please refer to the Virgin Money website www.virginmoneyforintermediaries.com/lending-policy/policy-overview for more information on maximum Loan to Value.

MAXIMUM PORTFOLIO LOAN OF £3 MILLION ON A MAXIMUM OF 10 PROPERTIES.
All Buy to Let products:
New Build Flats and New Build houses up to 75% LTV

Please note:
The maximum LTV is based on the lower of the valuation or purchase price.
Any incentives offered by the house builder will be deducted from the purchase price before the maximum LTV limit is applied.
The product fee can be added to the loan, and is allowed to take the maximum LTV above that determined above.
Purchases by way of sub-sale agreement are not normally acceptable. Refer to Virgin Money plc if further guidance is required.
Virgin Money plc no longer accept builders incentives of up to 5% of the purchase price.

Ex council houses accepted if 50% minimum in owner occupation, no local authority blocks of flats.
Student lets accepted

Accepted Locations : England, Scotland, Wales, N Ireland

Requirements


Bank Statements No
At Least 3 Months Pay Slips Yes
P60 Yes
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References Yes

Insurance
Buildings Conditional

Conditions On Loan
Min Loan
Max Loan /Rmg £1,000,000
Max Portfolio of BTL Loans £3,000,000
Min Age 21 years
Max Age 75 years
Min Term 7 years
Max Term 25 years
Minimum age on BTL products is 21years.
We do not accept BTL applications for first time buyers. For joint applications, at least one applicant must have been an owner occupier for at least 6 months on the date of decision, and we may request evidence of this.

If remortgaging on to a buy to let product a simultaneous completion must be made on a new residential purchase product.

PLEASE NOTE THAT THIS PRODUCT IS NOT AVAILABLE TO EXISTING VIRGIN MONEY PLC CUSTOMERS WHO WISH TO CHANGE THEIR EXISTING MORTGAGE DEAL WITHOUT MOVING HOME.
Minimum income £25,000.
The maximum age for applicants is 75 years, at the end of the mortgage term.
REFER TO LENDER FOR LET TO BUY
Foreign Nationals - EEA only must have minimum 3 years UK addresses, No EEA unrestricted rights to live and work in UK, plus 3 years addresses.

Your property must be adequately insured under an acceptable buildings insurance policy.
Foreign Citizens Accepted
Ex-Patriates Not Accepted

Income Multipliers
Rental Income must be 125% of the monthly mortgage payments when calculated using a rate of 5.99%.

Min months in current position none
Min months in continuous service none
Min no. of years accounts 2
Average years taken to calculate income 2
Will consider declining profit Refer

Outgoings
Rental income must be able to cover at least 125% of the mortgage interest, at a notional rate of 5.99% or payrate, whichever is higher.
Combined minimum income of £25,000 required on all Buy to Let applications. This will be verified in all instances.

Employed (Standard Income) - Last 2 monthly payslip & last P60, or last four weekly payslips & last P60.
Employed (Variable Income) - Last two monthly payslips & last P60, or last four weekly payslips and last P60.
Self Employed - Last two years accounts, or accountants certificate, or last two years HM Revenue and Customs SA302 forms.
Retired - Latest annual pension statement (must be dated within the last 12 months), or latest two monthly pension slips, or latest two monthly bank statements showing pension credits, or latest P60 or SA302

Loans greater than £500,000 available to all applicants with an accept score, subject to underwriter approval and a satisfactory affordability assessment.

If net profits are increasing - Average share of net profits over the last 2 years will be used.

If net profits have decreased - The most recent year will be used.

Rental Income must be 125% of the monthly mortgage payments when calculated using a rate of 5.99%.
Mininum Income £25000
Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft NOT Taken into account
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education Taken into account
Extra Income:-
Other Income - Guaranteed Add 50% to income before multiply
Other Income - Regular Add 50% to income before multiply
Other Income - Irregular No
Investment Income No
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments Add 100% to income before multiply
Non Contributory Pension No
Car Allowance Add 100% to income before multiply

Remortgage


Capital Raising 75%
Home Improvements 75%
Debt Consolidation 75%
School Fees 75%
Holidays/Cars 75%
Buy Other Property 75%
Business Purposes Not accepted
Divorce Settlement 75%
Unencumbered 75%


Adverse Credit


CCJs : Not Acceptable
Defaults : Refer to lender
Arrears : Refer to lender
Bankrupt : Not Acceptable
Current IVA : Not Acceptable
Repossession : Not Acceptable

A credit check will be made on all applicants and the loan will be declined where an adverse credit history is registered. In addition, credit scoring will be used as part of the decision-making process.
- The Lender will judge customers with previous or existing adverse credit in a flexible manner and every case will be judged on its individual merits, along with the customer's ability to keep up repayments on the mortgage, taking into account his/her existing liabilities.
- The Lender will consider cases of financial difficulty and mortgage arrears sympathetically.
- The Lender follows the general principles of the Council of Mortgage Lenders' Statement of Practice on Handling Arrears and Possessions, including :
a) with your co-operation, developing a plan with you for dealing with your financial difficulties and clearing the arrears, consistent with both your interests and those of the Lender.
b) possession of your property will be sought only as a last resort when attempts to reach alternative arrangements with you have been unsuccessful.