How much will Virgin Money lend me for a mortgage?

Virgin Money's mortgage offers are valid for six months from the date of issue.

An offer for a new build property is valid for seven months and the bank will be able to provide an offer extension for seven months subject to the application being re-underwritten against the current lending policy.

It is important to be aware that if you do ask for an extension to the mortgage offer the bank is likely to produce a new credit score. It is likely to ask for updated affordability details, your latest income verification and an update of any requested supporting documentation in the original application. If your financial situation has changed there is a chance your mortgage will be declined. The customer will also be required to choose a new mortgage product from those currently available.

Virgin's self-build mortgage offers are valid for six months from the date of issue.

The maximum loan-to-value for residential clients taking a mortgage on an interest-only basis is 75%. For residential customers taking a part and part mortgage, the maximum loan-to-value is 85%, of which up to 75% loan-to-value can be on an interest-only. Where residential borrowing exceeds 85% LTV, the whole mortgage must be taken on a full repayment basis.

Virgin Money tends to offer some of the cheapest fixed-rate mortgages in the market and provides a range of fixed periods.

Like most of the banks and building societies, its most competitively priced rates are two-year fixes, but it also provides, three, five, seven, ten and 15-year fixed rates.

The lowest is 1.62% fixed until 01 March 2022 and it has a £995 arrangement fee. Applicants will need a 35% deposit to qualify and early repayment charges apply until 01 March 2022. The overall cost for comparison is 3.60% and after the fixed-rate the mortgage revers to the standard variable rate, which is currently 4.99%. 

Where the loan-to-value is above 85%, the whole of the mortgage must be taken on a repayment basis. Borrowers must have a minimum of three items of active credit or one item which is greater than six months old. 

If you are applying for one of Virgin's residential mortgages and the lending is between 85% and 95% is available to both remortgage and purchase customers. On a new build house the customer must provide a minimum 10% deposit from their own resources.

Capital raising is not available for any customers looking to take a remortgage greater than 90% loan-to-value.

Virgin Money has one of the better lending policies for self-employed borrowers when they have a shareholding of 20% or more in a business or a small shareholding in a large Limited Liability Partnership (LLP).

The bank will want to see the last two years of business accounts to ensure the company has been profitable. The business must have been solvent and the capital amount must be positive, so the assets must outweigh the liabilities, in each of the last two years.

The types of self-employment that Virgin Money will consider are:

• Sole Trader / Partnership
• Limited Company

Where the mortgage loan size is greater than £1million the company must have been trading for three years. If the borrower is classed as self-employed by way of having a 20% or more shareholding in a Limited Company, HMRC SA302's are not acceptable as income verification.

For Limited Company Directors the last two years’ full accounts will be required. Virgin will also request an accountant’s covering letter. For Sole Traders and Partnerships, the last two years’ HMRC SA302's must be accompanied by the corresponding Tax Year Overviews and three months’ bank statements to evidence turnover. 

The bank can also help if you have retained profits.