Virgin Money up-dates buy to let criteria, raising ICR

Virgin Money is upping its interest coverage ratio from 125% to 145%, as part of a series of changes it is making to its buy to let criteria.

The changes, which come into effect from Monday 5th December, will also include a revision to the lender’s interest rate stress, from 5.74% to 5.50% for all tracker and fixed loans of less than five years.

The stress rate for Virgin Money’s five-year fixed rate products will be the higher of the product rate or its buy to let variable rate, which is currently 4.74%.

Another revision to its buy to let criteria is the decision to cease new lending to landlords who own more than 11 buy to let properties.

However, Virgin has left its maximum portfolio limit of £2m and/or four properties unchanged.

The lender’s current headline deals for buy to let landlords include two-year fixed rates at 60% loan to value (LTV) from 1.59% and five-year fixed rates at 60% LTV from 2.48%.

All buy to let deals with Virgin Money are offered with £500 cashback.

 

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