Compare Mortgage Rates from Virgin Money Against the Market

Virgin Money is one of the UK’s most recognisable banking brands, offering a comprehensive suite of mortgage products that combine competitive high-street pricing with flexible, human-led underwriting. Whether you are buying your first home, moving up the property ladder, remortgaging, or investing in buy-to-let property, understanding how Virgin Money assesses mortgage applications can help you secure the best deal for your circumstances.

You can compare the latest mortgage rates available from Virgin Money for free by using our mortgage-sourcing tool below:

Who are Virgin Money?

Virgin Money has grown to become one of the UK's largest banks, especially after merging with Clydesdale Bank and Yorkshire Bank. They combine the creative, customer-focused approach of the Virgin brand with the scale and history of established banking institutions.

As a mainstream lender, they cater to the majority of the mortgage market. They offer a full service, meaning you can apply directly through their website, over the phone, or in one of their "stores," or you can use a mortgage broker who can access their deals on your behalf.

Key Features of Virgin Money Lending:

• Diverse Product Range: Fixed-rate, tracker, interest-only, offset, and green mortgage options.

• Flexible Income Acceptance: Considers basic salary, overtime, bonuses, commissions, and secondary income sources.

• Specialist Options: Solutions for self-employed individuals, contractors, shared ownership buyers, and joint borrower sole proprietor (JBSP) arrangements.

• Digital & Broker Access: Available directly online or via whole-of-market independent mortgage advisers.

A Broad Range of Mainstream Products

They have a solution for most standard borrowers:

• First-Time Buyers: They consistently offer 95% Loan-to-Value (LTV) mortgages, requiring just a 5% deposit.

• Home Movers & Remortgagers: A huge selection of fixed and tracker rates to suit different needs and budgets.

• Product Transfers: A simple product transfer process for existing customers to switch to a new deal when their current one ends.

• Buy-to-Let: They provide mortgages for buy-to-letlandlords, covering both the purchase of new rental properties and remortgaging.

Innovative Features

Virgin Money often tries to do things a little differently. They are known for features such as:

• "Greener" Mortgages: Offering lower interest rates for customers buying a new-build home with a high energy 'green' efficiency rating (EPC A or B).

• Flexible Approach: While a large bank, they are known for having a slightly more flexible and pragmatic approach to underwriting than some of their older, more traditional rivals.

Virgin Money Lending Criteria

Income Multiples & Affordability

• Standard Borrowing Capacity: Income caps scale dynamically based on total household gross earnings, Loan-to-Value(LTV) ratio, and applicant credit profile. Higher earning thresholds generally unlock enhanced income multiples.

• Employed Income: Virgin Money accepts 100% of guaranteed gross basic income. Variable pay, such as regular overtime, shift allowances, bonuses, and commission is typically assessed using an average of recent payslips and P60 statements (often taken at a sustainable percentage weighting).

• Affordability Stress Testing: Applications are subjected to stress testing against prevailing regulatory benchmark rates to ensure long-term repayment viability across potential interest rate shifts.

2. Self-Employed & Contractor Criteria

• Trading History: Self-employed sole traders, partners, and company directors are evaluated based on multi-year trading accounts or HMRC Tax Calculation overviews (SA302s) with corresponding Tax Year Overviews.

• Assessment Basis: For limited company directors, assessment can be based on director’s salary plus dividend drawings, or in specific scenarios, share of net retained business profit.

• Contractors: Independent day-rate contractors (such as IT, medical, or management consultants) are assessed using their gross annualised contract rate, provided a continuous contract history and remaining contract term meet standard thresholds.

3. Deposit & Loan-to-Value (LTV) Requirements

• Residential Purchases: High Loan-to-Value tiers are supported for standard residential purchases, allowing buyers with modest deposits to enter the market.

• New Build Properties: Lower maximum LTV limits apply to new build flats and houses compared to established properties to account for initial construction valuation variances.

• Buy-to-Let Property: Requires a higher minimum deposit/equity share, with maximum borrowing constrained by rental stress testing rather than sole personal income.

4. Credit History & Risk Assessment

• Prime Focus: Virgin Money primarily targets prime and near-prime borrowers. Applications undergo automated credit scoring alongside manual underwriter review where complex circumstances exist.

• Adverse Credit Handling: Minor bad credit (such as older satisfied late payments) may be considered depending on recency, severity, and overall deposit strength. Severe recent credit impairments typically fall outside standard risk appetite.

5. Property & Tenure Eligibility

• Standard Construction: Properties built of standard brick or stone construction under freehold or long-leasehold titles are accepted standardly.

• Flats & Apartments: High-rise flats or modern developments require satisfactory building safety compliance documentation (such as EWS1 forms where applicable).

• Unconventional Property: Timber-framed, prefabricated, or non-standard constructions undergo individual valuation evaluation to confirm resale security.

Virgin Money Reviews

Virgin Money scores strongly for its digital-first mortgage management tools and mobile banking application. Borrowers can track their application status, make overpayments (within standard allowable penalty-free overpayment limits, typically 10% per annum), check balance statements, and request product switches online.

Customer feedback on platforms like Trustpilot reflects appreciation for straightforward online management, though peak processing periods can occasionally extend underwriting turnaround times.

Expert Opinion

Pros and Cons of a Virgin Money Mortgage

How to apply

Virgin Money offers a multi-channel approach, giving you the choice of how to apply:

1. Directly: You can apply yourself online via their website, over the phone, or by booking an appointment in one of their branches or "stores."

2. Through a Mortgage Broker (recommended): You can use an independent mortgage adviser who will guide you through Virgin Money's product range and manage the application for you.

Get started here to book a free, no-obligation chat with a broker who specialises in Virgin Money’s mortgage range and can offer independent advice on their products.