Virgin mortgage lending criteria adjusted for interest-only.
Virgin mortgage loan to value levels have been cut for interest only lending.
The lender who earlier in the year advised it had no plans to amend its interest only lending policy, has cut is maximum LTV from 75% to 70%. Inspite of the increase the LTV offered is still a good deal when compared against other UK lenders who in general offer 50% as the maximum LTV allowed.
Further Virgin mortgage restrictions were also announced stating that would-be interest only borrowers planning to use the sale of a second property to fund their interest only mortgage repayment, will now need a minimum deposit of 40% and not 30% as offered to those with an alternative acceptable repayment vehicle.
Sir Richard Branson has commented saying that this change brings the bank's interest-only lending criteria into line with the maximum loan to value permitted where sale of mortgaged property is the agreed repayment vehicle.
Existing customers are advised that they will be able to port their Virgin mortgage to a new property or remortgage with the lender on their existing terms, providing no material changes have been made to the size or term of the agreed loan.
If you are interested in a Virgin mortgage, or are looking for a review of your current deal against rates offered in the wider market contact Deal Direct.
Deal Direct 'whole of market' broker can search to market to find a competitive offer for you.
