Anybody switched deals with Virgin Money as existing customer?

d_seng

Hi all,

Has anybody switched deals with Virgin Money at the end of their current deal?

I am currently with them on a 3 year deal and have about 7 months or so to go but just want to be prepared, as I started a new job (higher pay) a few months ago so I'm not sure how it will affect my affordability criteria.

Are we still in the realm where existing customers are penalised for their loyalty? E.g. if they currently offer 1.72% fixed + £1k product fee to new customers, are existing customers offered a much higher rate?

Also, do they charge product fee when you switch? If not, I'm happy to pay up to £30 p.m. extra as it will cover any product fees.

Thanks

bigisi

d_seng wrote: »

Are we still in the realm where existing customers are penalised for their loyalty? E.g. if they currently offer 1.72% fixed + £1k product fee to new customers, are existing customers offered a much higher rate?

Not sure how you get that you are penalised. You’ve obviously enjoyed the new customer rate and were told up front that afterwards you would revert to the SVR.

They are a business and are there to make money, they’re not there to be your friend or anything other than keep the money rolling in. If you think you deserve anything for loyalty you’re deluded and clearly don’t understand how business works.

ACG

I am with them and switched my product last month.
I did it using our log ins to the broker portal. I just chose one of the products available as I no longer pass affordability.

As far as I am aware, you would be able to choose a new product without going through affordability checks. Their rates are not market leading anymore but they are ok.

d_seng

bigisi wrote: »

Not sure how you get that you are penalised. You’ve obviously enjoyed the new customer rate and were told up front that afterwards you would revert to the SVR.

They are a business and are there to make money, they’re not there to be your friend or anything other than keep the money rolling in. If you think you deserve anything for loyalty you’re deluded and clearly don’t understand how business works.

I'm deluded, really?

https://www.fca.org.uk/news/statements/super-complaint-citizens-advice-cma-excessive-prices-disengaged-consumers

PS: I work for the largest investment bank in the world, so I have a fair idea about how businesses work

d_seng

ACG wrote: »

I am with them and switched my product last month.
I did it using our log ins to the broker portal. I just chose one of the products available as I no longer pass affordability.

As far as I am aware, you would be able to choose a new product without going through affordability checks. Their rates are not market leading anymore but they are ok.

That's great, thanks. Do you mind sharing what was the previous rate and what was the offered rate? Or perhaps just the differential?

Did you have to pay product fees?

And what was the broker portal? Not their mortgage portal, right?

Cheers

ACG

I added a £999 fee to the mortgage as it was worth doing for the product we went with.

The rate was more or less half a percent higher than when I took out my last deal, but they were about 0.25% higher than the cheapest deal on the market (for me), so not horrendous by any means. I think they are more favourable at the higher LTV products, we were under 65% LTV.