Amazing Virgin money decision

bigbazzil

Anyone had a problem similar to ours? My wife and I, both in full time employment and 52 and 43 respectively, have exactly 4 years remaining on our Virgin (previously Northern Rock) repayment mortgage. Our current balance stands at £31,600. Our current deal has just ended and we applied for additional funds of £8,400, taking the total to £40,000 and to extend the repayment time to 7 years. 21 years without missing a payment and no other major debts (loans, credit cards etc), yes you guessed it, we were refused. To say we were flabbergasted was an understatement!!!

Thrugelmir

Most likely a commercial decision. Not worth the trouble to underwrite an extension of term at this level of debt.

Combining a release of equity with a term extension suggests affordability may be an issue for you.

ACG

How much is your income?
Are you permanently employed?
ANY bad credit mortgage related or not?
What is Virgins minimum loan amount? If its £50k then there is no point debating it as you could be Richard Branson and they would not lend it.

Did they give you a reason for the decline?

bigbazzil

Both permanently employed with a combined income of around £37,000 before tax. no bad debt whatsoever, no idea what minimum lend is, and no they never gave a reason for refusal.

Thrugelmir

What's the purpose of the loan?

Wh05apk

suspect this will be down to affordability, 7 years being a very short term, you need to speak to them, and they should give you an indication why it was declined, you may find you need to increase the term to 10 years or so.