Virgin Money and Clydesdale Bank have Improved Their Mortgage Affordability Criteria
Virgin Money and Clydesdale Bank have responded to the shift in the market and are amongst the latest lenders to improve their Loan to Income (LTI) multipliers, along with reducing rates, as many borrowers are starting to struggle to obtain large enough mortgages.
These changes offer a sizable improvement to their mortgage and affordability criteria allowing borrowers to qualify for larger mortgages compared to last week. This is a great announcement which will assist prospective borrowers.
Virgin offering for purchases or re-mortgages with additional borrowing:
- Income under £50,000 – 4.49 x times single or joint salaries
- Income £50,000 to £74,999 – 5 x times single or joint salaries
- Income of £75,000 or more – 5.5 times single or joint salaries
However, the Loan to Income is capped at 4.49 x if one of the following applies:
- Over 85% Loan to Value
- If any part of the loan is interest only
- Any applicant is self-employed (not including contractors)
- There is shared ownership
In order to determine the £50,000 - £75,000 income levels, Virgin Money will consider in their Loan to Income calculations, the two highest earning applicants: basic salary, 60% of allowable variable income and 100% of pension.
Virgin Money offering for Remortgages with no additional borrowing:
- Up to 85% Loan to Value – 5.5 x single or joint salaries
- Over 85% Loan to Value – 4.49 x single or joint salaries
When remortgaging with no additional borrowing, income level and self-employment do not affect the Loan to Value limits. The max LTI is capped at 4.49x multiple if any part of the loan is interest only.
Clydesdale Bank who is part of the Virgin Money group is offering high earners 5 .5 x their incomes which includes Professionals with a minimum income of £30,000. To qualify for these criteria with Clydesdale Bank you will have to have been qualified in the last 5 years and must be registered with your Professional Body. These professions include, accountants, architects, barristers, surveyors, dentists, doctors, pharmacists, solicitors, teachers and vets.
How can Brooklyns Financial help?
We will advise you on the options available that are bested suited to you. We are here to help you every step of the way Just give us a call 01628 564631 or email us info@brooklynsfinancial.co.uk for an initial chat?
Please note your mortgage is secured on your property. Your home may be repossessed if you do not keep up repayments on your mortgage.
The information contained within was correct at the time of publication but is subject to change.
Source: Virgin Money, Clydesdale
