Virgin Money using sale of the property as interest-only mortgage repayment vehicle
Virgin Money has changed its lending criteria to make qualifying for its interest-only mortgages easier.
The bank has added the sale of a mortgaged property as an acceptable repayment vehicle for applications up to 35% loan-to-value (LTV). The mortgage term cannot run past the client's retirement age, and the client needs to have a minimum of £300,000 in equity in the property.
Virgin has increased the maximum loan-to-income multiple on interest-only and part-and-part mortgages from 3.5x salary to 4.49x salary. The maximum loan-to-value on residential interest-only and part-and-part loans has also increased to 65% LTV.
Applicants will need a single or combined minimum gross income of £75,000, and this includes any additional income such as bonuses or overtime.
Aaron Strutt, product director at Trinity Financial, says: “Many of the biggest lenders offer interest-only, so there is a lot of competition to attract borrowers.
“Accord Mortgages has one of the more attractive policies, the lender requires applicants to have £250,00 equity in their property or £300,000 if it is in London. They do not have a minimum income to qualify.”
Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire.
The information contained within was correct at the time of publication but is subject to change.
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