Virgin Money have changed their lending criteria and will now only accept interest-only cases with a minimum loan size of £300,000. The same policy will also apply for part capital repayment and part interest-only cases.

Existing Virgin Money customers who want to port their mortgage to a new property, or who want to remortgage to a new Virgin Money product, are able to do so with no material lending changes.

Existing interest-only customers who want to increase their loan size can apply for the additional lending on a repayment basis if their loan is below £300,000.

There will be no changes to Virgin Money’s interest-only policy on buy to let loans.

Pete Ball, product and commercial director at Virgin Money, said “While some lenders have chosen to withdraw from interest-only lending completely over recent months, we believe that it remains an important part of the mortgage market for customers who can demonstrate confidence in repaying their loan at the end of its term through a clear and evidenced repayment plan. We have updated our lending policy, although there are no changes for existing Virgin Money customers who can continue their mortgage under their current arrangements.”

The lender continues to offer Loan to Values of up to 70% on interest-only loans.

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