Virgin Money has revealed plans to double its new build lending to at least £1 billion this year alone, while developing its overall share of the market to 3.5%. Having significantly expanded its lending to first time buyers over the last 12 months, Virgin Money is also expecting to witness an upward trajectory this year in the first time buyer space, with significant growth compared to the approximate £500m in new build lending last year.
The lender has announced it is preparing to up its overall lending target from £7.5bn to between £8.5bn and £9.5bn. This follows the news Virgin Money will be gearing itself to amend its affordability criteria; revising its requirements and loan limit for certain customers. The precise details of these changes are yet to be revealed, however, the lender has said it will be adapting its approach towards customers previously viewed with caution in terms of its loan limit.
This is generally aimed at customers with larger incomes and relatively low levels of unsecured credit, making changes based on how they assess income and expenditure, in regards to the income multiples they are prepared to apply to certain cases. More support will now be on offer in relation to many of the lender’s competitors.
Along with this, Virgin Money has also introduced a selection of reduced rates to products from its core residential and buy to let mortgage ranges. This also comes with an increased amount of cashback on buy to let intermediary exclusives, from £500 to £750 for a limited time, or £1,500 on its buy to let Stamp Duty Buster products.
2 and 3 year fixed rates between 65% and 90% loan to value (LTV), has been reduced by up to 0.2%, while a 2 year fix at 65% LTV now comes with a rate of 1.69% and a £995 product fee, or 2.47% or a 2 year fix at 90% LTV. This comes with a £995 product fee and £300 cashback for next time buyers, or £500 for first time buyers.
3 year fixed rate buy to let mortgages are also available at 75% LTV with a rate of 3.74% and £500 cashback with a £995 product fee, 3.69% for a 5 year fix at 75% LTV with a £1,995 product fee and £500 cashback, or 3.79% with a £995 fee and £500 cashback.