Virgin Money has relaunched its 95% LTV shared ownership deals.
It has also unveiled a new 95% LTV two-year fixed rate.
The lender has also made selected rate reductions and updated its lending criteria for contractors.
Product details are as follows:
Exclusive purchase deals with £1,000 cashback:
- 85% LTV two-year fixed rate with £995 fee has been reduced to 2.40%
- 85% LTV five-year fixed rate with £995 fee has been reduced to 2.70%
Other changes:
- New 95% LTV two-year fixed rate fee-saver at 3.79%
- 95% LTV five-year fixed rate has been reduced to 3.95%
- 65% LTV five-year fixed rate fee-saver has been reduced to 1.48%
- Selected 85% LTV fixed rates, including Greener options, have been reduced by up to 0.07 percentage points
- Selected HTBEQL 75% LTV fixed rates, including Greener options, have been reduced by 0.16 percentage points
- Selected buy-to-let fixed rates have been reduced by up to 0.50 percentage points.
Product Transfer:
- 95% LTV shared ownership five-year fixed rate has been reduced to 4.14%
- 85% LTV two-year fixed rate with £995 fee has been reduced to 2.38%
- 65% LTV five-year fixed rate fee-saver has been reduced to 1.48%
- Selected buy-to-let fixed rates have been reduced by up to 0.50 percentage points.
Shared ownership deals are available up to a maximum term of five years and lending on flats over 80% LTV must be in buildings of no more than 10 storeys.
Following recent IR35 rule changes, Virgin Money accepts contracts that fall within IR35 rules. It also accepts contract income received via a payroll services (umbrella) company.
When a contractor is paid via an umbrella company, or falls inside IR35 and receives payslips, the lender will need to see the last two months’ payslips in addition to standard documentation. Any statutory employer costs (including employer NI contributions and Apprenticeship Levy) and any payroll service costs are deducted from gross pay before the lender multiplies gross pay by 46 weeks.
