Virgin Money early redemption fee

Alisflem

Hi -we are due to move as soon as lockdown ends (whenever that may be) and before this, had a mortgage agreed with our existing lender Virgin Money. On the phone last week, they informed they were no longer agreeing mortgages. Because of this, we have to go to another provider. However the sting is that we have to pay Virgin an early redemption fee of £12k. Obviously we'd have preferred to stay with them, but we also need to move. What are our rights, if any when it comes to this?

davidmcn

None at all. There's no obligation on lenders to agree to "port" a mortgage to another property.

ACG

Ordinarily I would agree with Davidmcn whenever I read posts about avoiding ERCs. 
However, I think under the circumstances, I would definitely be firing in a complaint. Yes, you have to apply for a port and no guarantee it will be accepted but I think there needs to be some common sense applied by the lender here. 

Thrugelmir

When does your mortgage offer lapse. 

Alisflem

Thrugelmir said:

When does your mortgage offer lapse. 

April 2021

amnblog

You have a concession to port the product, not the lending.
If VM will not offer new lending on the new property for whatever reason, you cannot port the product and if you redeem the current lending, any relevant early repayment penalty will come into force.

Thrugelmir

Alisflem said:

Thrugelmir said:

When does your mortgage offer lapse. 

April 2021

I assume that's your current product. I'm referring to the mortgage offer that Virgin have currently made you. As your post suggests you are due to move soon. . 

Alisflem

Thrugelmir said:

Alisflem said:

Thrugelmir said:

When does your mortgage offer lapse. 

April 2021

I assume that's your current product. I'm referring to the mortgage offer that Virgin have currently made you. As your post suggests you are due to move soon. . 

We've no completion date, for obvious reasons, however the mortgage offer was made at the beginning of March. I appreciate you takign the time to help, and hope this is the information you're lookign for?

[Deleted User]

If you have a mortgage fully agreed then they will honour this. An agreed mortgage is one where a mortgage offer has been issued.

If you have a mortgage application that has been agreed but the valuation hasnt been done, they will suspend the application until such time they are able to do new valuations.  

If you have not yet submitted an application then you will either have to go elsewhere or wait a few weeks until they return for purchase business.  They are one of the largest lenders in the industry, they will be back very soon.

You were told on the phone that they were not accepting new mortgages. This is true.   Where you told that your agreed mortgage was being pulled? or did you infer that from the comment about new mortgages not being accepted?