Virgin Money has unveiled a major overhaul of its foreign national mortgage lending policy, bringing more flexibility and higher loan-to-value (LTV) ratios to those who are not ILR or settled/pre-settled status holders. The move will help more foreign national clients purchase property in the UK.
Greater Support for Applicants Looking for Foreign National Mortgages
Virgin Money has now introduced more relaxed criteria for foreign nationals in the UK, making it simpler for non-ILR holders to secure mortgage products, either purchasing a property or investing in a BTL property.
Other key policy changes are:
Higher LTVs for joint applications
For joint mortgage applications where one applicant is ILR and one is not, Virgin Money will now lend 95% LTV, with no minimum income. Note: The changes mentioned above are based on the latest version of the document.
Up to 90% LTV for non-ILR borrowers
If both borrowers do not have ILR, Virgin will lend up to 85% LTV with no income requirement for the borrower. This increases to 90% LTV if one or more of the borrowers is making £75,000 or more per year.
Improved BTL mortgage offers
For buy-to-let mortgages, Virgin Money will lend up to 80% LTV. The borrower must be an owner-occupier. If there are no ILR applicants, then a minimum income of £75,000 is needed. If an applicant holds ILR, then there is no minimum income.
Minimum visa requirements shortened
Virgin also lowered the minimum visa duration to be valid. When income from a visa-holding applicant is to be used in an application, only 9 months on a visa are necessary provided that the visa is on Virgin Money’s list of recognised visas.
Recognising Settled and Pre-Settled Status
Interestingly, Virgin Money continues to treat those with settled or pre-settled status the same as if they possess ILR. This entitles them to the same favourable lending conditions, which means that there are greater homeownership chances for EU and other non-domestic foreigners living in the UK.
Standard Residency Conditions Continue to Apply
Every applicant, foreign national or otherwise, must have resided in the UK for the past three years in order to qualify under Virgin Money’s lending conditions.
Why This Is Important to Foreign Nationals Securing UK Mortgages
These changes demonstrate a broadening awareness of the requirements of non-UK nationals and expats who live in the UK. With increased maximum LTVs, broader visa acceptance, and relaxed income conditions, foreign national mortgage borrowers now have better access to mortgage finance, either for their initial home or investment in UK property. For those seeking foreign national mortgage lenders in the UK or inquiring how to secure a mortgage without ILR, Virgin Money’s policy amendments are a significant advancement.
In need of a foreign national mortgage in the UK?
Consult one of our specialist mortgage consultants at Oportfolio Mortgages, and learn how these lenient lending terms can be tailored to your requirements.
