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Contractor Mortgages Criteria at Virgin Money – A Concise Overview

Virgin Money Contractor Mortgages 

Virgin Money mortgages for Contractors can be classified as employed for income and affordability considerations under specific criteria:

  • Minimum income of £50,000.
  • A minimum of 12 months of contracting experience or a two-year track record employed in the same line of work.
  • A minimum of three months remaining on the current contract or evidence of renewal.
  • No more than a 6-week break between contracts.
  • Professional contractors with a limited company are acceptable if they don’t employ others or have more than one contract.

Income Documentation for Virgin Contractors Mortgages:

  • Evidence is required from the current and previous contract or previous P60s (for contracts under 12 months).
  • Three months’ bank statements showing credits from the contract.
  • For umbrella/payroll services, the last two months’ payslips are needed.

For Contractors Earning Less Than £50,000 or Employed on a Fixed Term/Agency Basis:

  • Evidence of a two-year track record of this income type must be provided.

Umbrella/Payroll Services Companies & IR35:

  • Contractors falling inside IR35 are acceptable.
  • Bank statements must evidence the full contract value.
  • Deductions are explained if a lower amount is received.
  • The last two months’ payslips are required for those paid via umbrella/payroll services.

If Criteria Cannot Be Met:

Contractors are treated as self-employed, requiring two years of accounts or two years of HM Revenue & Customs (HMRC) SA302 and corresponding Tax Year Overviews.

Virgin Money Self-Employed Mortgages

 Customers are considered self-employed if they have a shareholding of 20% or more in a business or a small shareholding in a large Limited Liability Partnership (LLP).

Requirements:

  • Access to two years of profitable business accounts.
  • Business must have been solvent in the last two years.

Types of Self-Employment Considered:

  • Sole Trader / Partnership
  • Limited Company (trading for three years if loan > £1 million)

Documentation for Sole Traders and Partnerships:

  • Last two years’ SA302s and corresponding Tax Year Overviews.
  • Latest month’s business bank statement.

Bank Statements for Income Verification

  • Two of the last four months’ bank statements are required for income verification.
  • Specific requirements for employed by a family business, paid in cash, or providing handwritten payslips/P60.
  • Self-employed applicants need the latest month’s business bank statement.

Buy-to-Let & Consumer Buy-to-Let

  • Both BTL and CBTL loans are offered.
  • Criteria for BTL and CBTL loans explained.
  • ICR and Stress Rate calculations were provided.

Policy Criteria

  • Conditions related to estimated monthly rental, minimum age, maximum LTV, loan size, and more.
  • Property condition requirements for BTL consideration.

Restrictions

  • Available to individuals only, not Limited Companies.
  • Restrictions on the number of units in one block/development.
  • Minimum EPC rating of E required.

This concise overview provides essential information for understanding the contractor mortgage criteria at Virgin Money.