Rates were increased following last month's base rate rise
Virgin Money has announced changes to its mortgage variable revert rates and to its lending policy in relation to foster carers’ income.
Following last month’s 0.50% increase in the Bank of England’s base rate, Virgin Money’s residential standard variable rate (SVR) will increase from 7.74% to 8.24%. Its loyalty rate, for qualifying residential customers who have held a mortgage on a property for seven years or more, will increase from 7.49% to 7.99%. The lender’s buy-to-let variable rate will go up from 7.94% to 8.44%.
The revised rates will take effect for new customers from March 2, 2023, and for existing customers, from April 1, 2023. The full details of all mortgage products offered by Virgin Money can be found in its latest mortgage update.
Meanwhile, Clydesdale and Yorkshire Bank customers will also see the banks’ residential SVR increase from 7.74% to 8.24%, and the residential offset variable rate go up from 7.95% to 8.45%. Their buy-to-let revert rate, offset variable investment housing loan rate, will also increase from 8.24% to 8.74%.
The revised rates of these two banks will take effect for new customers from March 2, 2023, and for existing customers, from their next payment date after March 2.
New lending policy accepts foster carers’ income
Virgin Money has also introduced a new lending policy, which allows Virgin Money and Clydesdale Bank customers to include income from foster caring, using the lenders’ usual self-employed policy.
“We know how important a role foster carers in the UK play, which is why we’ve made improvements to our lending policy that will help us to support this sector of over 50,000 households,” Craig Calder, head of secured lending at Virgin Money said. “We continually review our lending policy, and these changes ensure that we can support these key workers in their aspirations of homeownership.”
Any individuals under foster care should be included as dependants within the application.
Borrowers are also advised to check the Virgin Money affordability calculator and the Clydesdale Bank affordability calculator to determine how much customers could borrow.
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