Virgin Money requesting more information from self-employed borrowers applying for a mortgage

For borrowers trading through a limited company, they will need to provide the last two years’ full accounts, and for sole traders or partnerships, the last two years’ HMRC SA302s accompanied by the corresponding Tax Year Overviews. 

Applicants will also need their latest three months business bank accounts if they are sole traders or partnerships or limited companies. The latest statement must be dated within two weeks of the application start date and online statements are acceptable, or three months personal bank statements for limited liability partnerships. Again, the latest statement must be dated within two weeks of the application start date and online statements are acceptable. 

If your business has been temporarily affected by the coronavirus but continues to or is now actively trading and you expect a negative change or gradual build-up in income... Where available an accountant produced or reconciled management information document should be submitted in the form of Profit and Loss showing actual performance for the past 12 months (month on month). 

If the business suspended trading as a result of the virus, Virgin Money expects a minimum of three months trading period to review the post-COVID performance before submitting an application. 

Virgin Money will not provide a self-employed mortgage:

• Where your income has been negatively impacted by the virus and your current income fails the affordability assessment. Virgin will typically lend up to five times single and joint income.  
• Where the business is not actively trading. 
• Where there has been a loss in the last two years or where the company's net worth has been negative in the last two years. 
• Where the profit and loss (where provided) shows the business was loss-making pre-coronavirus. 

What business sector do you work in? You will need to provide details on experience and track record.

If your business been impacted by COVID-19 and what changes have been made?

If you have applied or received financial support from the government? This included any type of loan, grant or furloughing employees. 

Where you have taken a payment holiday on any of your current financial commitments like mortgages, loans or credit card. You will also need to explain why you chose to take the payment holiday. 

Virgin Money will even want to know if your income has not been hit by Covid-19.

Where you had to reduce or suspend trading as a result of the coronavirus Virgin Money will want to understand the current trading and operating levels. Also if you have put any additioanl capital into your business.

To give an overall understanding of the business the form will ask you to explain how the changes will impact your income going forward and whether you have plans to move to online or change your customer base.

Virgin Money is offering employed and self-employed borrowers some of the cheapest rates in the market with two-year fixes below 1.20% and five-year fixes below 1.5%. Borrowers will need a 35% deposit to access these rates, although the lower deposit mortgages are not much more expensive.