Virgin Money has made a positive change to its loan-to-income (LTI) policy.

The lender has removed its interest-only cap, so the repayment method no longer features in its LTIs anymore.

Virgin Money’s new loan-to-income policy is as follows:

Purchase or remortgage with additional borrowing:

• Income under £50,000 – 4.49x
• Income £50,000 to £74,999 – 5x
• Income of £75,000 or more – 5.5x

Max 4.49x LTI, whatever the income, if any of the following apply:

• Over 85% LTV
• Any applicant is self-employed (not including contractors meeting our contractor policy)
• Shared ownership

Remortgage with no additional borrowing:

• Up to 85% LTV – 5.5x
• Over 85% LTV – 4.49x

When a customer is remortgaging with no additional borrowing, their income and self-employment don’t affect LTI limits.