Virgin Money has introduced new loan-to-income restrictions, while also expanding access to its 90 per cent loan-to-value deals.

The lender, which also owns Clydesdale Bank, is the latest to announce tighter restrictions on LTIs.

Its maximum LTI will be 4.49x income in cases over 80 per cent LTV.

This does not apply to remortgage applications where there is no additional borrowing.

In such cases the lender’s existing LTI cap of 4.49x income applies where the applicant wishes to borrow above 85 per cent LTV.

Virgin is increasing its maximum LTI for all interest-only and part-and-part cases to 4.49x. 

In addition to basic pay, 100 per cent of pension and allowable benefit income will be used in LTI calculations.

On Thursday 4 March, Virgin’s 90 per cent LTV deals will be opened up to next-time buyers and remortgage borrowers, as currently only first-time buyers can apply.

These deals will be available up to a maximum property value of £500,000 and a term of up to 30 years. 

Flats, maisonettes and new builds will not be accepted for these high LTV deals.