Virgin Money changes new-build mortgage policy

Virgin Money has changed its mortgage policy in relation to new-build incentives, by accepting cash incentives from builders of up to £1,000 on new-build properties to help towards purchase fees.

The cash incentives of up to £1,000 will not impact the valuation of the property, Virgin Money said.

In a note issued to all new-build ‘intermediary partners’ today (4 September), the lender stated that the new policy applies to all applications, including those through the Help to Buy equity loan scheme, while existing products remain unchanged.

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Peter Rogerson, Virgin Money’s savings and mortgages director, said that the policy change “will play an important part in helping people buy a new-build property so they can take their first step on the housing ladder as well as helping those who want to move to another property”.

Andy Frankish, new homes director at MAB, added that by listening to customers, brokers and developers Virgin Money have ensured their criteria covers a wide cross-section of applicants without compromising the quality of the business brokers introduce.

“I hope that more lenders will follow by supporting new build in the way Virgin Money have over the last 10 months.”