Virgin Money pulls out of first-time buyer buy-to-let mortgage market
Virgin Money has stopped offering buy-to-let mortgages to first-time buyers.
Following a review of Virgin’s lending policy applicants will need to have been an owner-occupier for at least six months in order to qualify for a buy-to-let mortgage.
Aaron Strutt, product manager at Trinity Financial, says: “Buy-to-let mortgages tend to be easier to qualify for than residential mortgages. Many of the lenders are concerned borrowers will live in the property rather than let it out.
“If borrowers do live in the property they will typically be in breach of their terms and conditions. This is a huge issue for some lenders and they will actively look to evict landlords if they find out they have moved in.”
A spokesman for Virgin Money told Mortgage Strategy magazine: “The changes we have made are designed to ensure that we continue to lend within our buy-to-let risk appetite. We also think that buy-to-let customers should have experience of owning a property previously.”
Trinity still has access to at least three lenders offering buy-to-let mortgages to first-time buyers, but the list of banks willing to help is more limited.
If you would like help to secure a buy-to-let mortgage, call Trinity on 020 7016 0790.
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