diff --git a/GPy/inference/latent_function_inference/var_dtc.py b/GPy/inference/latent_function_inference/var_dtc.py
index 1d998fcb..d35080f6 100644
--- a/GPy/inference/latent_function_inference/var_dtc.py
+++ b/GPy/inference/latent_function_inference/var_dtc.py
@@ -79,7 +79,7 @@ class VarDTC(object):
         # kernel computations, using BGPLVM notation
         Kmm = kern.K(Z)
 
-        Lm = jitchol(Kmm)
+        Lm = jitchol(Kmm+np.eye(Z.shape[0])*self.const_jitter)
 
         # The rather complex computations of A
         if uncertain_inputs: