It also reprices several of its Exclusives and Product Transfer deals
Virgin Money has announced changes to its mortgage lending policies, alongside updates to several of its mortgage products.
The modifications, the lender said, are designed to provide more flexibility for borrowers with second incomes, contractors, and those currently on probation in their employment.
Key changes to the mortgage lending policy include allowing 100% of income from second jobs to be considered, provided it has been consistent for at least 12 months, a shift from the previous requirement of 50% and a two-year employment history.
For contractors, Virgin Money has eased its policy to now require a contract renewal only if the existing contract has less than one month remaining, compared to the earlier three-month requirement.
In addition, individuals on probation can now secure a mortgage more easily with just a copy of their contract and a payslip to confirm permanent employment, moving away from the previous requirement for two years’ employment proof or an employer’s letter.
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“We constantly look for ways to improve our mortgage business, and the latest changes to our lending policy will make it is easier to get a mortgage with Virgin Money,” said Craig Calder, head of secured lending at Virgin Money.
“The application process for contractors, or those who are in a probationary period in a new role, will be far simpler, and we’re able to say ‘yes’ to more customers who have income from a second job.”
Aside from lending policy changes, Virgin Money has also updated the pricing on several of its mortgage products.
The lender’s 90% loan-to-value (LTV) purchase five-year fixed rate mortgage saw a slight increase in its fee by 0.02% to 4.67%. The 85% and 95% LTV purchase fix and switch fixed rate fee saver mortgages were both increased by 0.05%, to 5.29% and 5.73% respectively. Furthermore, the 70% LTV remortgage Fix and Switch fixed rates were hiked by 0.04%, starting from 4.89%.
Selected two-, three-, and five-year fixed rates for 65% and 75% LTV product transfers were increased by up to 0.05%, with rates starting from 4.38%.
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