Virgin Money is set to launch its range of products within the mortgage guarantee scheme set up by the government, and it has revealed details about the criteria.
These products will have loan-to-value (LTV) of 95% and will be made available for properties that are valued at £600,000 or less. The duration of the mortgages provided by Virgin Money under the scheme will be 30 years maximum, and they will cover remortgaging or buying maisonettes, houses or flats.
Virgin Money is indicating that, in the case of a flat or a maisonette, the loans covered by the government’s scheme will only be available if the buildings are a maximum of four storeys in height. The buildings also cannot be formerly owned by the local council or by the Ministry of Defence.
The lender has also clarified that anyone applying for a product under the loan guarantee scheme cannot have an existing interest in a house or flat, and that they will have to sign a customer declaration to that effect.
Virgin Money’s Customer Acquisition Head told Mortgage Strategy that:
“It’s encouraging to see that the Government’s mortgage guarantee scheme is off to such a strong start and we are pleased to be offering a wide choice of products to new and next time buyers as well as remortgage customers.”
This scheme should be welcomed by anyone with CeMAP mortgage advisor training, as it is likely to bring people into the market who would otherwise be unable to buy due to the pandemic.