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Mortgage Lending criteria

Mortgage Lending Criteria - Virgin Money

Virgin Money


Notes: The following information is general and may not apply to your mortgage. We have not verified this information with the lender.

Ask your broker to confirm any aspects that are important to you. The main features of this mortgage will be confirmed in the Key facts Illustration. Please ask your broker for a Key facts Illustration

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Mortgages

Advances
Upto 1,000,000 (Remortgage only LTV 75)

Notes
Mortgage is Portable

Provided that Virgin Money plc are willing to accept a mortgage application from you in the future Virgin Money plc will allow you to transfer the remainder of this mortgage product to your next property. If Virgin Money plc allow you to transfer this mortgage product the following conditions will apply:

You must be selling this property and purchasing another property as your home and complete the new loan within three months of repaying this loan.

If you do not repay the loan on this property on the same day that you complete the loan on your next property then any applicable Early Repayment Charge set out above will be payable on that day. Provided that you then complete the loan on your next property within three months of that day any Early Repayment Charge paid will then be refunded in full.
If the new loan is for less than the amount required to repay the mortgage on this property, you will be required to pay any applicable Early Repayment Charge on the difference between the two amounts.
Additional borrowing will not be available on this mortgage product.

If you require additional borrowing to purchase your next property, you will be able to apply for a new product for the additional amount upon the terms of the porting product range available at that time.

As an alternative to transferring the remainder of this mortgage product to your next property, you can apply for a new mortgage upon the terms of the product range available at that time. If you complete the new loan within three months of repaying this loan Virgin Money plc will refund half of any applicable Early Repayment Charge.

PLEASE NOTE THAT THIS PRODUCT IS NOT AVAILABLE TO EXISTING VIRGIN MONEY PLC CUSTOMERS WHO WISH TO CHANGE THEIR EXISTING MORTGAGE DEAL WITHOUT MOVING HOME.

PLEASE NOTE THAT THERE IS A MINIMUM LOAN REQUIREMENT OF 300,000 FOR NEW RESIDENTIAL CUSTOMERS TAKING A MORTGAGE ON AN INTEREST ONLY OR PART AND PART BASIS.

Once a customer has had their mortgage with us for 7 years, a loyalty discount is available, this will be at least 0.25% off Virgin Money plc's Standard Variable Mortgage Rate for the rest of the life of the loan. This is providing that mortgage payments are up to date.
They do not continue to benefit from a special rate (such as a product discount, a guaranteed rate, or fixed rate) or other product benefit (such as a cashback) and they are not within an Early Repayment Charge period.

When porting your existing mortgage, cashback will not be available either on your existing product, or any new borrowing.


Payment Holidays Allowed. You may apply for 1 month payment holiday for every 9 consecutive full monthly payments you make. The maximum payment holiday period is 3 months, which can be applied for once you have made 27 consecutive full monthly payments.

The number of consecutive payments is reset to zero if you do not make a full monthly payment in the month it is due, or we agree for an underpayment to be made.
Interest will continue to be charged during a payment holiday and you will be advised of your revised monthly mortgage payment which will apply following your payment holiday. Taking a payment holiday will also increase the outstanding balance upon which future loan interest charges are calculated.

When deciding if we allow a payment holiday, we will assess your ability to repay the revised total mortgage balance and the associated monthly payments, based on your individual circumstances at the time. This will include an affordability assessment, which may require income verification. All payment holidays are subject to Virgin Money plc's prior agreement.

Free Standard Remortgage Valuation. Where Virgin Money plc arranges and instructs standard basic valuation on this remortgage application, we will meet the valuation costs.

Free Standard Remortgage Legal Services - Virgin Money plc will pay for the legal work involved in a standard remortgage. Virgin Money plc will appoint a Solicitor to undertake the legal work. The Solicitor will be acting for Virgin Money plc and not for you.

You will be responsible for paying the costs of any additional or non-standard legal work that may be required or that you request, for example;
- Transfers of equity
- Landlord's registration fee
- Land Registry first registration fee
- Money transmission charges (e.g. CHAPS)
If you wish to appoint your own choice of Solicitor to act in this transaction, all legal costs will be paid by you.

During the Early Repayment Charge period you are allowed to make overpayments of up to 10% of the outstanding balance in each calendar year without incurring an Early Repayment Charge.

In the year that your mortgage product commences, the 10% allowance will be calculated from the original loan balance. In subsequent years, the 10% allowance will be calculated from the balance as at the 31st December of each calendar year.

If, during the Early Repayment Charge period, you make overpayments of more than 10% of the outstanding balance in any calendar year, an Early Repayment Charge will be payable on the amount repaid that is in excess of the 10% allowance.

For example, if your outstanding balance was 100,000 at 31st December, you would be entitled to make overpayments of up to 10,000 in that calendar year without incurring an Early Repayment Charge. If you overpaid by 12,000 in that year, you would be charged an Early Repayment Charge on the 2,000 that is above the annual allowance.

Please note that the annual 10% overpayment allowance cannot be carried forward from one calendar year to the next.

Following receipt of an overpayment, your outstanding balance and the interest charged will be recalculated with immediate effect. Please note that for an overpayment made by cheque, interest is adjusted two business days after we process the cheque.

If you make an overpayment by Direct Debit, or an overpayment of less than 500 by another payment method, your contractual monthly payment will not be recalculated.

However, if you make an overpayment of 500 or more, by a method other than Direct Debit, your contractual monthly payment will be recalculated. We will write to you to confirm your new contractual monthly payment, which will apply from the first of the following month.

If you wish to leave your contractual monthly payment unchanged to further reduce your outstanding mortgage balance, you will need to contact Virgin Money to set up a payment arrangement. Any payment arrangement currently applied to your account will be unaffected.

To make a regular monthly overpayment to reduce your outstanding mortgage balance, you will need to contact Virgin Money plc to set up a payment arrangement.

There are no restrictions on making overpayments after the Early Repayment Charge period has ended.

Let to Buy : Refer
Capital Rest Period : Daily

Repayment Types
Repayment Yes
Endowment 70% LTV
PEP 70% LTV
Pension 70% LTV
Interest only (no RV) No
With Profits 70% LTV
Unit Linked 70% LTV
ISA 70% LTV
Split Repayment 85% LTV

Fees


Arrangement : varies
Booking : None

Early Repayment Charges
varies

Higher Lending
None

Valuation
Basic:
upto 60,000 - 112
upto 100,000 - 132
upto 150,000 - 163
upto 200,000 - 188
upto 250,000 - 214
upto 500,000 - 275
upto 750,000 - 331
upto 1,000,000 - 377
upto 1,500,000 - 510
upto 2,000,000 - 663
upto 2,500,000 - 817
upto 3,000,000 - 970

Homebuyers:
upto 60,000 - 270
upto 100,000 - 311
upto 150,000 - 352
upto 200,000 - 398
upto 250,000 - 444
upto 500,000 - 510
upto 750,000 - 561
upto 1,000,000 - 612
upto 1,500,000 - 817
upto 2,000,000 - 1021
upto 2,500,000 - 1225
upto 3,000,000 - 1531

Early repayment charge applies to the outstanding secured loan balance at the time of redemption. Any overpayments in excess of the 10% annual allowance will also be subject to the early repayment charge..

For loans where the advance exceeds 1million, and additional desktop valuation will need to be carried out for a fee of 75.


Application Fee - 99.00 Payable upfront. Non-Refundable

Acceptable Property Types

 

Freehold Flat No
Purpose Built Flat Yes
Converted Flat Yes
Flat Over Shop No
Maisonette Refer
Studio Flat No
Flying Freehold No
Thatched Yes
Timber Framed Refer
Concrete Refer
Agricultural Tie No
Flat Over 4 Storeys Refer
Listed Building Yes

Max Discount% 100
Max Market Value% 95
New Build acceptable. Acceptable Properties
Home Purchase/Remortgage Maximum LTV
Valuation or purchase price whichever is the lower:
0 to 500K Remortgage 85%, Purchase (FTB & NTB) 90%
500,001K+ Remortgage 80%, Purchase (FTB & NTB) 80%
Maximum loan size 1 Million

Construction
Properties to be of conventional construction built in stone, concrete block or brick with solid or cavity walls. Roof of slate, tile, thatch or felt.
Non conventional construction - subject to specific requirements detailed in Lending Policy

Tenure
Freehold, Leasehold, Commonhold & Absolute Title (Scotland)
Leasehold - Mortgage term plus 30 years.

New Build
Defined as ‘property where construction is completed or the property first occupied in the last 24 months’.
Max 70% LTV for flats & 85% Houses.
NHBC or equivalent warranty required if property construction completed in last 10 years

Flats
Acceptable to maximum 10 storeys in London (Within bounds of M25), 5 storeys rest of UK
Ex LA, MOD and Housing Assoc. flats maximum 3 storeys
Must be leasehold/Absolute Ownership. Leasehold with share of the freehold acceptable
No studio flats
Converted flats acceptable subject to all of above & Planning consents
Deck access - No ex LA, MOD or Housing Assoc.

Self Build
Virgin Money will consider self build properties on an individual basis. Please Refer to Lender
Funds are released in three stage payments:
- Wind and weather tight
- Plastered out
- Completion
Please note: Virgin Money do not release mortgage finance on the security of land only. Therefore the applicant must have sufficient resources to progress the property to wind and weather tight stage. Suitable new build warranty / architects certificate required.

BTL
All property types Maximum LTV 70%
Minimum property value 40,000
Maximum loan 1 Million.
Maximum Portfolio 3 Million, 10 properties.
Property must be in Habitable condition
Property to be readily Lettable
Monthly rental calculated on basis of unfurnished property with single AST

Accepted Locations : England, Scotland, Wales, N Ireland

Requirements


Bank Statements 1 months
At Least 3 Months Pay Slips Yes
P60 Yes
Proof Of Residency Yes
Life Policy To Be Assigned No
Previous Lender References Yes

Insurance
Buildings Conditional

Conditions On Loan
Min Loan
Max Loan /Rmg 1,000,000
Max Portfolio of BTL Loans 3,000,000
Min Age 18 years
Max Age 75 years
Min Term 7 years
Max Term 35 years
PLEASE NOTE THAT THERE IS A MINIMUM LOAN REQUIREMENT OF 300,000 FOR NEW RESIDENTIAL CUSTOMERS TAKING A MORTGAGE ON AN INTEREST ONLY OR PART AND PART BASIS.

PLEASE NOTE THAT THIS PRODUCT IS NOT AVAILABLE TO EXISTING VIRGIN MONEY PLC CUSTOMERS WHO WISH TO CHANGE THEIR EXISTING MORTGAGE DEAL WITHOUT MOVING HOME.
The maximum age for applicants is 75 years, at the end of the mortgage term.
REFER TO LENDER FOR LET TO BUY.

Your property must be adequately insured under an acceptable buildings insurance policy.
Foreign Citizens Refer
Ex-Patriates Not Accepted

Income



Based on Income > 0
5 + 5 or 5 joint

Min months in current position none
Min months in continuous service none
Min no. of years accounts 2
Average years taken to calculate income 2
Will consider declining profit Refer

Outgoings

Virgin Money no longer use income multiples to assess how much a customer can borrow. Please refer to Virgin Money's online affordability calculator at www.virginmoneyforintermediaries.com to obtain an accurate maximum borrowing figure based on your clients' individual circumstances.
The income verification differs depending on credit score - refer to Virgin Money plc.
Customers with LTV greater than 70% (including all applications for first time buyers and where the property is worth less than 100,000):

Employed (Standard Income) - Last 2 monthly payslip & last P60, or last four weekly payslips & last P60.
Employed (Variable Income) - Last two monthly payslips & last P60, or last four weekly payslips and last P60.
Self Employed - Last two years accounts, or accountants certificate, or last two years HM Revenue and Customs SA302 forms.
Retired - Latest annual pension statement (must be dated within the last 12 months), or latest two monthly pension slips, or latest two monthly bank statements showing pension credits, or latest P60 or SA302.

Customers with LTV up to and including 70%:

Loans greater than 500,000 available to all applicants with an accept score, subject to underwriter approval and a satisfactory affordability assessment.

For customers employed for less than six months an employers reference will be required

Maintenance payments to be taken into account.

If net profits are increasing - Average share of net profits over the last 2 years will be used.

If net profits have decreased - The most recent year will be used.

Hire Purchase Taken into account
Personal Loans Taken into account
Overdraft NOT Taken into account
Credit/Store Cards Taken into account
Child Maintenance Taken into account
Child Education Taken into account
Extra Income:-
Other Income - Guaranteed Add 50% to income before multiply
Other Income - Regular Add 50% to income before multiply
Other Income - Irregular No
Investment Income No
Mortgage Subsidy Add 100% to income before multiply
Large Town Allowance Add 100% to income before multiply
Maintenance Payments Add 100% to income before multiply
Non Contributory Pension No
Car Allowance Add 100% to income before multiply

Remortgage



Capital Raising 75%
Home Improvements 75%
Debt Consolidation 75%
School Fees 75%
Holidays/Cars 75%
Buy Other Property 75%
Business Purposes Not accepted
Divorce Settlement 75%
Unencumbered 75%



Adverse Credit


CCJs : Not Acceptable
Defaults : Refer to lender
Arrears : Refer to lender
Bankrupt : Not Acceptable
Current IVA : Not Acceptable
Repossession : Not Acceptable

A credit check will be made on all applicants and the loan will be declined where an adverse credit history is registered. In addition, credit scoring will be used as part of the decision-making process.
- The Lender will judge customers with previous or existing adverse credit in a flexible manner and every case will be judged on its individual merits, along with the customer's ability to keep up repayments on the mortgage, taking into account his/her existing liabilities.
- The Lender will consider cases of financial difficulty and mortgage arrears sympathetically.
- The Lender follows the general principles of the Council of Mortgage Lenders' Statement of Practice on Handling Arrears and Possessions, including :
a) with your co-operation, developing a plan with you for dealing with your financial difficulties and clearing the arrears, consistent with both your interests and those of the Lender.
b) possession of your property will be sought only as a last resort when attempts to reach alternative arrangements with you have been unsuccessful.


November 2013