Virgin Money now providing BTL for portfolio landlords

Virgin Money Portfolio landlords criteria:

• Max 75% LTV on the property to be mortgaged.
• Max five BTL mortgages with Virgin Money, or £3m.
• At least 24 months experience of letting properties is required at the time of application.
• Personal income can’t be considered for any property rental shortfalls.
• Max portfolio of 10 mortgaged BTL properties across all lenders, including the new application.
• In total the portfolio must not exceed 70% LTV, with a minimum interest cover ratio of 145%, at an interest stress rate of 5%. If there are any mortgage free properties, the equity and rental income on these will be taken into account. This excludes the new application.
• Max five properties either mortgaged or mortgage free and including the new application, can be within the same postcode area e.g. NE3, EH2.
• Max two BTL properties (either mortgaged or mortgage-free) purchased in the last 12 months, including the new application.

Stress and affordability testing:

• Evidence required of a minimum personal combined gross income of £25,000. This excludes income received from BTL properties.
• The rental income must cover 145% of the mortgage interest. This will be calculated in one of the following ways:
  All products will be calculated at a notional rate of 5.50%, except five year fixed rate products. Five year fixed rate products will be calculated at 5.00%.
• The rental income for a BTL remortgage with no additional borrowing must cover the mortgage payment by 125%, calculated at a notional interest rate of 5.50% across all products.
• Personal income can’t be considered to meet any rental shortfalls for portfolio BTL.

There is a very wide range of products available, but interest rates depend on the Loan to Value, Fee costs, product term, early redemption penalties etc.