Virgin Money has removed its interest-only cap, so this repayment method no longer features in the bank’s loan-to-income ratio.  

The lender says the move will boost the affordability of its loans for borrowers “as more will get the loan amounts they need”.  

The bank breaks down its new criteria change:  

Purchase or remortgage with additional borrowing  

• Income under £50,000 – at 4.49 times  
• Income £50,000 to £74,999 – at 5 times  
• Income of £75,000 or more – at 5.5 times  

Max 4.49 times loan to income, whatever the income, if any of the following apply:  

• Over 85% loan to value  
• Any applicant is self-employed, not including contractors meeting our contractor policy  
• Shared ownership  

Remortgage with no additional borrowing:  

• Up to 85% LTV – at 5.5 times  
• Over 85% LTV – at 4.49 times  

The lender adds that when a customer remortgages with no additional borrowing, their income and self-employment will not affect its loan-to-income limits.