Virgin Money targeting landlords with 20% deposits
Virgin Money for Intermediaries has started offering buy-to-let mortgages to landlords with 20% deposits.
The bank has launched a range of two and five-year fixed rates with arrangement fees varying between £0 and £1,995. The maximum loan size is £350,000, and some mortgages come with £500 cashback.
At least ten lenders offer 20% deposit buy-to-let mortgages including Clydesdale Bank, Paragon and Kent Reliance. Kensington Mortgages recently introduced a 15% deposit buy-to-let mortgage to cater for landlords with smaller deposits.
Aaron Strutt, product director at Trinity Financial, says: “Virgin Money used to require landlords to put down a 25% deposit but it is easing criteria to attract more borrowers. The bank has increased its maximum age for landlords from 75 years to 85 years.”
Clydesdale Bank currently has the most competitively priced two-year buy-to-let fix for mortgages up to £750,000, and it undercuts Virgin’s price by 0.46%. However, the mortgage must be taken on full capital repayment, rather than interest-only and this likely to put many landlords off.
Virgin Money has a generous standard rental calculation rental to work out the maximum loan size, and Clydesdale offers larger mortgages when personal income is taken into consideration.
Call Trinity Financial on 020 7016 0790 to secure a buy-to-let mortgage
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