Lender won't accept changes after Illustration

Troubled42

Hi all,

We received a Mortgage Illustration with Virgin Money late January with a rate of 1.99% 5 yrs fixed, new build. As a couple we are applying together.

We've hit the roadblock that as my wife is currently on a spouse visa (with the move to make this permanent in the next 2 years), they are now turning round to say they cannot accept this as part of the application. (after two months worth of back & forth + valuation)
It was transparent from the start that this would be the case in terms of visa status but I appreciate everything is still 'subject to underwriting'.

 Luckily - I can afford the property with my income alone... so I asked them to remove my partner from the application and continue. Another week later - I've been told that Virgin can't change this without offering a newer rate. (2.32%..) Something within their 'T&CS' preventing this. My broker has argued this with Virgin but they aren't budging.

 Are we out of luck? It does seem very unfair given the circumstances.
 If you use a bit of common sense, we have the following;
- we were up front about the visa situation to begin with
- I can afford the application on my own, therefore there's barely any change to the overall application, if anything, its simpler with one person
- the rate has been locked in since 27/01/22.
- Virgin also took a valuation fee and we'd have to fight to get this back if we go with another lender. (which we would do, because their rates are higher now)

The next best option for us seems to be Halifax. I'll put both deals down below for anyone who is curious. You can understand in this climate that every penny counts...

Previous joint deal;

Virgin Money 1.99% 5yrs fixed £1,000 cashback, £995 app fee. £214 valuation fee.

Next best offer;

Halifax 2.09% 5yrs fixed £250.00 cashback, £999 app fee. £100 valuation fee.

Halifax's offer would put this at £10 more per month and there's significantly less cashback.

Cheers all.

[Deleted User]

Virgin tie the DIP to a particular product so if any material changes need to be made then a new product needs to be chosen.  If broker is trying to argue this then they are either diverting attention or clueless. Virgin have always been this way

Virgins policy is clear for foreign nationals in that they clearly state that indefinite leave to remain is required.  

Why did the broker apply to them? If they would have never accepted the case then it sounds like the broker needs to justify why they applied to virgin and if it was thw wrong choice then compensate for the lost opportunity of the best deal you would have qualified for at the time