Incentives greater than 5% will be deducted from whichever is lower from the purchase price or valuation to assess the maximum loan to value.
Virgin will also enable the purchase of a customer’s existing residence by a builder or developer under a part-exchange scheme as part of a mortgage application.
Peter Rogerson, Virgin Money’s commercial director for mortgages, said: “New build is an important segment of the housing market that Virgin Money is keen to support.
“Following engagement with a number of large builders and specialist new build mortgage intermediaries, we have made these enhancements to our mortgage policy to provide additional flexibility for people buying a new build property.”
Virgin has also changed its offer extension policy, as there will be an option to extend open offers to 12 months where the construction is not completed.
