Virgin Money has loosened its portfolio landlord buy-to-let policy by increasing its maximum loan to value (LTV) and cutting the aggregate rental cover requirement of the existing property portfolio.
It also made a series of changes to its policy for contractors and on residential applications, where the customer holds other mortgages.
For portfolio landlords, the maximum loan to value (LTV) allowed on the existing portfolio has increased from 70 to 75 per cent.
The aggregate rental cover requirement of the existing property portfolio has been cut from 145 to 135 per cent, calculated at an interest rate of five per cent.
The lender has also removed the speed of property portfolio growth restriction.
Contractors and residential policy
Further, Virgin Money has improved lending policy for contractors earning over £50,000 per annum.
They will now be considered if they can evidence 12 months contracting experience, or a two year track record employed in the same line of work. If not, they will be assessed on a self-employed basis.
The lender has increased LTV limits on residential applications to 90 per cent, where the customer holds other mortgages, provided the new property is the main residence.
Standard LTV policy rules will now apply where a customer is named on a buy-to-let mortgage.
Andrew Asaam, director of mortgages at Virgin Money, said: “We regularly review our lending policy, taking into account feedback from our intermediary partners to look at where we can make a positive difference.
He added: “This latest round of changes demonstrates our commitment to improving choice for customers across all segments of the mortgage market, making it easier for intermediaries and their customers to do business with us.”