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Virgin Money enhance BTL Affordability for Landlords

Journalist: Justin Moy, Contributing Editor

ended 31. August 2023

Virgin Money has just announced improvements for the BTL Affordability calculation, potentially giving landlords more from their property.

  • This improvement starkly contrasts the changes announced by Santander earlier this week, and suggests Virgin Money are keen to lend.
  • Are you surprised by this move from Virgin? Will other lenders take note and change their affordability models?
  • What message does this send to landlords too?

Your comments, views, opinions and thoughts as always, are appreciated

3 responses from the Newspage community

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Editor
Justin Moy
Managing Director at EHF Mortgages
This is quite a surprising move by Virgin Money, given how Santander and other lenders have decided not to compete in the BTL market, by increasing their stress tests way out of reach of most landlords. Whilst rates are somewhat difficult to price as lenders, what they are capable of is improving their criteria, what income they will consider, and in this case, the ability to borrow more by using the same rental income will allow some smaller landlords the opportunity to make their figures work. This move will be really appreciated by brokers and landlords and hopefully will encourage other lenders to do the same.
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Darryl Dhoffer
Founder at The Mortgage Geezer
Good to know Virgin is still lending - hardly been on my radar when sourcing products. In all fairness, fair play to them for finally coming to the party, and again can only endorse any lender at present that brings something beneficial to the consumer.
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Elliott Culley
Director at Switch Mortgage Finance
Good to see Virgin taking some positive steps in the market when others take a step backwards. There is still a long way to go, but Virgin's changes could particularly help out clients who are remortgaging without any additional borrowing. As they have launched some new rates as well this may help some landlords in the market.