Virgin Money Overpayments

chelseablue

Looking at remortgaging to Virgin. 

I was on hold for 45 minutes this afternoon then gave up. 

Does anyone know how Virgin apply any overpayments? Do they reduce the monthly payment from the following month or reduce the term? 

Currently with nationwide and anything over £500 over paid you get the choice of reducing term or reduce monthly payments 

Paulpen

We are with them and the couple of payments we have done in the last few years have not changed the following monthly payment so they must reduce the term.

We are only talking a couple of hundred here and there though so im not sure if larger amounts are treated differently

jrawle

There are a few threads on Reddit that suggest that if you overpay by < £500, they do nothing, but it it's > £500, they recalculate the monthly payment. The monthly payment will also change the next time they need to do a recalculation anyway (e.g. interest rate change). This is identical to the default Nationwide policy. It may be possible to ask Virgin to reduce your term, as you can with Nationwide.

Even if they lower your monthly payment, you can simply overpay more in future months if you want to pay off your mortgage more quickly. This also gives you more flexibility.

Discussions here:
https://www.reddit.com/r/UKPersonalFinance/comments/it96iq/mortgage_overpayments_affecting_monthly_repayment/

https://www.reddit.com/r/UKPersonalFinance/comments/kquhvf/virgin_money_mortgage_overpayments/

chelseablue

Thank you so much! I did call again this morning and the lady I spoke to didn’t know the answer. 

Doesn’t fill me with confidence haha

The other option from our broker is Natwest, maybe I should go with them they seem to know more what’s going on