Australian stocks closed lower in Friday trading, with the Financials, Healthcare and A-REITs sectors showing the biggest decline. The financial services company Virgin Money UK was the worst performer on Friday, with shares dropping 10.20% or 0.20 points to trade at 1.80.
Despite closing low, the Australian stocks enjoyed a record high in the last 8 weeks. The ASX 200 lost 95.4 points or 1.63% to trade at 5755.7 at the close. This marked a fifth consecutive session of gain for the Australian stocks. The reason why shares were declining at the end of the trading session was the increasing tension between the US and China.
Virgin Money UK announced the resuming of its mortgage lendings with up to 90% loan-to-value (LTV) ratio. The financial institution will also accept Help to Buy applications at up to 80% LTV. In addition to the wide range of products being launched, Virgin Money UK will also withdraw temporary limits on loans and property values. This would mean that the previous maximum loan sizes will be resumed.
Virgin Money UK, along with its financial brands like Clydesdale Bank, will offer a variety of services that can help in different cases. The company is relaunching shared ownership deals at up to 90% LTV from 2.09%. The new-build deals at up to 90% LTV from 2.15% are included in the services that will be resumed. The public will also have the chance to resort to buy-to-let deals at up to 80% LTV, while the LTV ratio for portfolio landlords will be 75%.
Analyst stock price forecast and recommendation
According to MarketBeat, analysts gave the Virgin Money UK stock a consensus price target of ₤154.63. The company has a potential upside of 63.9% from its current price of ₤94.32. This forecast is based on 7 research reports conducted in the last 90 days.
The same media also offers the recommendations of 10 investment analysts who have participated in a Virgin Money UK stock survey. The company received a consensus rating of “Hold”, with 5 analysts ranking the stock as “Buy”, 4 as “Hold” and 1 – as “Sell”.