It now accepts studio flats and relaxes requirements for self-employed borrowers
Virgin Money has announced changes to its lending policies for property and self-employed customers.
The bank now accepts applications for studio flats that have an internal floor area of 30 square metres or more.
A change to lease term requirements was also made by Clydesdale Bank, which now needs an unexpired lease term of 85 years at application.
“If it’s in the process of being extended, it can be under 85 years at application, providing it’ll be over 85 years at completion,” Virgin Money said in an email sent to brokers. “Leases under this term can be considered by exception.”
In the announcement that was also posted on its website, Virgin Money added that it had also improved policy clarity on homes close to commercial properties, allowing valuers to use more discretion, along with their local knowledge and expertise.
The lender has removed maximum acreage for properties and will only look at the first two acres for valuations.
Self-employed customers applying for Virgin Money or Clydesdale Bank mortgages will also benefit from the policy changes as both banks have streamlined requirements on bank statements.
“It’s now just the latest month’s statements required from limited companies, LLPs, partnerships, and sole traders,” Virgin Money said.
Earlier this week, Virgin Money announced changes to its mortgage variable revert rates as a result of last month’s 0.25% Bank of England base rate increase. Clydesdale Bank’s and Yorkshire Bank’s residential standard and offset variable rate and buy-to-let revert rate and offset variable investment housing loan rate were also increased.
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