Virgin One Account 2024 changes

stimulantorb

I just received a letter from Virgin One account today that says from Feb 2024 I wont be able to:

• Borrow more money or increase your limit
• Get extra funds to move home
• Change the names on your mortgage

Does anyone understand this, as its an offset mortgage every month im borrowing more, wages go in balance goes more positive, then i spend some of the money so it goes more negative, but net its lower.

Are they saying that my facility limit will be reduced?

Anybody else had this?

Thanks

Ray

ACG

I cant answer your question as I have not seen the paperwork. 

But would you not be better switching lenders? The rate on that must be 8% now if not more if they have passed on all of the rate rises. 

stimulantorb

Thanks for the reply, Im not sure I just really like the flexibility that if I need to I can spend upto my limit

MWT

stimulantorb said:

Does anyone understand this, as its an offset mortgage every month im borrowing more, wages go in balance goes more positive, then i spend some of the money so it goes more negative, but net its lower.

You are not borrowing more when you spend, you are just reducing the amount available to offset your loan.

ACG

stimulantorb said:

Thanks for the reply, Im not sure I just really like the flexibility that if I need to I can spend upto my limit

It might be cheaper to switch mortgage and just have a credit card? I suppose it depends on how much you spend and how often. 
Just a thought. 

stimulantorb

MWT said:

stimulantorb said:

Does anyone understand this, as its an offset mortgage every month im borrowing more, wages go in balance goes more positive, then i spend some of the money so it goes more negative, but net its lower.

You are not borrowing more when you spend, you are just reducing the amount available to offset your loan.

Ah, OK thanks, i guess i will have a chat with them to see if that is the way they look at it

Hoenir

stimulantorb said:

Are they saying that my facility limit will be reduced?

I'd suggest not. What you have in place already will be frozen next February. There's probably a contractual 3 month / 90 day notification period that has to be given for changes to your account. Would appear that the longer term intention is to run-off existing accounts and no longer open new ones.