Virgin Money Mortgage repayment increase?

reddodgydon

Hi, I had a letter today informing me, my mortgage repayments had increased "as they have reviewed my account", this was a Northern Rock mortgage, none of the reasons they give in the letter, all very vague, would appear to apply, waited on the phone 20 mins, only to be told they were so busy they would phone me back tomorrow, as the guy answering the phone "was credit cards and picking up calls for them"
The huge volume of calls makes me think this is rubbish, definitley been fobbed off, although he mentioned that "The FSA required them to write" Any Ideas anyone?
:mad:

Thrugelmir

Some more information would be helpful. As to precisely what has changed and what mortgage product you have.

kingstreet

What exactly does the letter say?

Without at least a hint of what you've been told and why, we're more in the dark than you are.

opinions4u

Welcome to the MSE knitting fog forum.

reddodgydon

Hi all thanks for your interest, if there was a clue in the letter I'd have solved it ! Judging by the call centre breakdown I guess I expected to find people with a similar issue on here , hopefully some may have got a decent answer from Virgin, which would have placated me, the letter was a standard, letter to all, with 5 reasons as to why they increased my mortgage ie, you have missed a payment, changed your loan, bought a service from us, and as I said, none of these appled, I guess unless you're a Virgin customer and had the same letter, or you work for them you can't help, thanks anyway
Don

Steve-o_W

Hi, I'm an independent financial adviser and I got the same letter about my own mortgage. I've spoken to our rep with Virgin Money and they didn't know what it's all about either but have had several similar queries but have promised to find out and let me know so watch this space!

kingstreet

Missing telegraphic transfer fee, by any chance?

reddodgydon

HI, might have been the transfer fee, but i was too angry to listen, I was really annoyed that the letter they sent out was so un-transparant! clearly the reasons in the letter had nothing to do with the real reason, and yes it was to do with a charge at the beginning of the mortgage, I was also told it was all being done in my best interest, condescending or what, I was told I had no choice in it , couldn't give me a straight answer as to the fact I signed to a fixed deal for three years which surely means they can't change the direct debit amount. Apparently I have to register an official complaint. Needless to say I will be cancelling both virgin credit cards and my virgin media account

opinions4u

reddodgydon wrote: »

the fact I signed to a fixed deal for three years which surely means they can't change the direct debit amount.

It means they can't vary the interest rate applied to the part of the mortgage that's been fixed.

But if you didn't pay a fee up front and this doesn't currently get calculated as part of the monthly payment they have to do something about it sooner or later or you'll have the debt forever.

Apparently I have to register an official complaint.

Do it calmly and sensibly and you may well get a little bit of interest written off.

Needless to say I will be cancelling both virgin credit cards and my virgin media account

I might be mistaken, but I believe MBNA operate the credit card and 90% of the TV service is not actually owned by Mr Branson.

LindaMcI

Hi there
I had a similar letter today and posted a thread today
Virgin Money Mortgage/Northern Rock Change to a Fixed Rate Mortgage
(sorry can't post link as I'm a new user)

I was also put through to the wrong section (Savings) as they said they were so busy because of all the letters sent out. I refused to be called back and got through to the correct Dept after about 20 seconds!! Basically they told me my change of payment to my 10 yr Fixed Rate Mortgage was because they didn't charge me the Telegraphic Transfer Fee of the mortgage funds six and a half years ago on the day of the re-mortgage completion so they've added it now. I used the solicitor who The Northern Rock appointed and paid the Solicitor/Licensed Conveyancer Fees of £300 which I assume would have covered everything to do with any transfer of money between mortgage companies and solicitors. (or maybe not) I have as advised by pm2326 in my own thread checked to see if it was mentioned in my first mortgage statement which it is and is included in my first mortgage balance which means it is still being carried forward in my balance to date, so how can they now add the charge on again? I have asked for a detailed report and explanation from Virgin Money into the reason for the payment change, they said they will do this but they can't file a complaint from me at the same time so I have to wait for the explanation and then if I'm not happy with that (HAHA!!) I can then lodge a complaint.

opinions4u

LindaMcI wrote: »

Hi there
I had a similar letter today and posted a thread today
Virgin Money Mortgage/Northern Rock Change to a Fixed Rate Mortgage
(sorry can't post link as I'm a new user)

I was also put through to the wrong section (Savings) as they said they were so busy because of all the letters sent out. I refused to be called back and got through to the correct Dept after about 20 seconds!! Basically they told me my change of payment to my 10 yr Fixed Rate Mortgage was because they didn't charge me the Telegraphic Transfer Fee of the mortgage funds six and a half years ago on the day of the re-mortgage completion so they've added it now. I used the solicitor who The Northern Rock appointed and paid the Solicitor/Licensed Conveyancer Fees of £300 which I assume would have covered everything to do with any transfer of money between mortgage companies and solicitors. (or maybe not) I have as advised by pm2326 in my own thread checked to see if it was mentioned in my first mortgage statement which it is and is included in my first mortgage balance which means it is still being carried forward in my balance to date, so how can they now add the charge on again? I have asked for a detailed report and explanation from Virgin Money into the reason for the payment change, they said they will do this but they can't file a complaint from me at the same time so I have to wait for the explanation and then if I'm not happy with that (HAHA!!) I can then lodge a complaint.

You have made an expression of dissatisfaction though. Make a note of the date and the conversation that said you can't complain.

The date is when the clock started ticking on your right to escalate to the FOS if they don't resolve the complaint to your satisfaction.

The conversation that says "you can't complain yet" is a breach of FSA principles. If you do have to go to the FOS make sure you highlight this point. It will help tip the a balance in your favour.

If I've to this right, payments are being charged a fee from six years ago, together with interest on that fee.

If the charge has never appeared on a statement you will be able to get this fixed. The FOS will, IMHO, insist that it is written off and a modest compensation payment made. If it's not on your KFI document that adds further weight to any complaint.

My guess is that it appeared on your first mortgage statement and is included in your balance. If this is the case it's less clear cut. If it's on your KFI document that muddies the water further. But if the amount involves is c£60 and they are trying to stop you complaining you really could kick up a fuss. If the FOS accept the complaint it will cost the lender £500 a pop. Much cheaper to write off the sum in question.

So keep on at them. Escalate to the FOS if they refuse to budge.

What they've done may, technically, be right. The way they've explained it sounds poor. Telling you that they won't let you complain (yet) is outrageous.