Virgin Money extends 90% products to homeowners

Virgin Money extends 90% products to homeowners
Credit: Jason Alden/Bloomberg

Virgin Money has extended its 90 per cent LTV mortgages to homeowners.

The lender’s high value products have only been available to first-time buyers but have now been extended to next-time buyers and remortgage customers.

All of its 90 per cent LTV deals will be available for properties with a maximum value of £500,000 and for a term of up to 30 years.

The products will not be available for flats, maisonettes or new-build properties.

Data from Moneyfacts last month showed an increase in the number of products in the 90 per cent LTV market, to 248 at the start of February, up from 160 in the month before.

However, Virgin Money has reduced its maximum loan-to-income (LTI) on higher LTV loans from 5x to 4.49x where the LTV is more than 80 per cent, excluding remortgage applications with no additional lending.

Aaron Strutt, product and communications director at Trinity Financial, commented: “Any reductions to lower deposit mortgage income multiples make it harder for first-time buyers to borrow the amount they need to get on the property ladder.”

Meanwhile, for all interest-only and part-and-part applications, the maximum LTI will increase from 4x to 4.49x.

Decisions in principle submitted after 8pm yesterday (March 3) will be assessed using the lender’s new policy, while pipeline customers will not be affected.

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