Virgin Money Mortgage Review: Pros, Cons & Features

Virgin Money mortgages: at a glance

Virgin Money offers capital repayment and interest-only mortgages, plus a range of mortgages that include fixed-rate and tracker-rate options. Your mortgage term can be set to a maximum of 35 years. It’s possible to apply for a Virgin mortgage online or over the phone, with support for mortgage customers available through the same places.  

Depending on the type of Virgin Money mortgage you have, it may be possible to overpay by up to 10% of your outstanding mortgage balance each year before an early repayment charge is payable, or if you have a flexible mortgage there may be no limits on overpayments at all, as long as you don’t pay off your mortgage in full.

Virgin Money mortgage pros & cons

Virgin Money mortgage overview

Virgin Money is the seventh largest mortgage lender in the UK and offers mortgages to first-time buyers, home movers and those looking to remortgage. It also offers buy-to-let mortgages to landlords. 

Virgin Money mortgages are available for terms of between seven and 35 years, and there is no specified minimum amount that you need to borrow. Customer support is available online and over the phone.  

Product options	Capital repayment  Interest-only  Fixed rate  Tracker  85% loan-to-value or higher Green
Term length	7 – 35 years
Minimum loan size	No minimum
Allows overpayments	Yes
Mortgages are portable	Yes
Ways to apply	Online, phone, broker
Customer service contact options	Online, phone
Fairer Finance customer experience rating	63% (as at 31 October 2023)

Where Virgin Money mortgages stand out

Low minimum mortgage amount 

If you’re looking for a smaller mortgage, Virgin Money does not specify a minimum amount that you need to take out to be eligible for its mortgages. Some other lenders we’ve reviewed set minimum mortgage amounts as high as £50,000.

Part and part mortgages are available

If you want a repayment basis that sits somewhere between capital repayment and interest-only, Virgin offers part and part mortgages, which are a combination of both options. However, you’ll need a repayment strategy in place for paying back any of your original loan amount that hasn’t been repaid during the mortgage term.  

You can check your eligibility and sign online

If you like to manage as much as you can online, Virgin Money allows you to check your mortgage eligibility and sign your mortgage agreement online. 

Where Virgin Money mortgages fall short

Narrow range of mortgage terms

The maximum mortgage term of 35 years that Virgin allows is shorter than the 40 years that other lenders we’ve reviewed allow. The minimum mortgage term of seven years is also longer than you can find elsewhere.

Fewer direct product options than some

Virgin Money offers a smaller range of mortgage options direct to borrowers than some other lenders, with Shared Ownership and Right to Buy mortgages only available if you apply through a mortgage broker. Mortgages for buyers using the First Homes scheme, family or springboard mortgages, discount mortgages and offset mortgages are not available at all.

Access to customer support 

Compared with some other lenders, Virgin Money customer support options are a little lacking. If you don’t get a satisfactory response from the automated chat system online, you will only be transferred to a real person if you’re an existing customer and logged in to your account. It’s also not possible to get mortgage advice in a Virgin Money branch. 

» MORE: Best mortgage lenders

What types of mortgages does Virgin Money offer?

Virgin Money first-time buyer mortgages

Virgin Money offers first-time buyer mortgages up to 95% loan-to-value (LTV), meaning that you may be able to get a mortgage with a 5% deposit. Fixed rate and tracker options are both available if you are taking your first step onto the property ladder. 

Virgin Money remortgages

If you’re looking to remortgage, Virgin offers fixed-rate and tracker remortgage deals up to 95% LTV, which include free valuation and legal fees. 

Virgin Money buy-to-let mortgages

Virgin Money buy-to-let mortgages are generally available to a maximum 80% LTV, or up to a maximum 75% LTV if you are a portfolio landlord who has four or more mortgaged rental properties.

Virgin Money mortgage features

Repayment options

Virgin Money mortgages are available on a capital repayment and an interest-only basis. You may also be able to pay part of your mortgage as repayment and the other part as interest only, combining both. 

With a repayment mortgage, your monthly repayments go towards paying off your interest and some of the original mortgage amount, or capital, you borrowed. If you make every repayment on time and in full, your entire debt should be cleared by the end of your mortgage term. 

Interest-only mortgages are different in that your monthly repayments pay off the interest that you’re charged each month but don’t repay any of the original loan amount. Instead, you’ll need a repayment strategy in place when taking out the mortgage that aims to pay back your loan in full when your mortgage term ends. Typically this may be an endowment plan or some other form of investment. Note that interest-only mortgages are generally more difficult to obtain than capital repayment mortgages and often come with lower LTV limits. For a residential Virgin Money interest-only mortgage the maximum LTV is 75%.

» MORE: Interest-only vs. repayment mortgages

Mortgage rates

Virgin Money offers fixed-rate and tracker rate mortgages. With a fixed-rate mortgage the interest rate you pay is fixed for a set period – typically this will be two, five or maybe 10 years. This gives you peace of mind that your monthly repayments will not change.  

When your deal ends, you may decide to remortgage to a new deal or, if you do nothing, you’ll move onto Virgin’s standard variable rate (SVR). This can rise or fall and may be higher than the rate you’ve been paying.  

With a tracker mortgage, the mortgage rate you pay, and your monthly repayments, also have the potential to rise and fall. The Virgin Money tracker mortgage follows movements in the Bank of England base rate, so it’s vital to work out whether you could still afford your monthly repayments if rates were to go up.  

» MORE: See current mortgage rates

Loan-to-value ratios

Virgin Money offers residential capital repayment mortgages to 95% LTV, which means there are mortgage options available if you have a 5% deposit. If you’re looking at residential interest-only mortgages, these have a maximum LTV of 75%.

» MORE: Why your LTV is important for a mortgage

Mortgage offers 

A mortgage offer from Virgin Money is usually valid for six months. During this period, the mortgage rate you’ve been offered should not change.  

Making overpayments

If you have an Everyday Mortgage from Virgin Money, you can currently overpay a maximum of 10% of your outstanding mortgage balance each calendar year without having to pay an early repayment charge. If you have a Fully Flexible Mortgage, at present unlimited overpayments are allowed without charge, provided you don’t pay off the mortgage in full. 

» MORE: Mortgage overpayment calculator

Paying off your mortgage early

If you’re thinking of paying off your mortgage early, you’ll need to request a redemption statement from Virgin Money. This will confirm everything you need to pay, including any charges. 

Porting your mortgage

If you’re moving home and want to take the Virgin Money mortgage you already have with you, you can ask Virgin to port your mortgage. If there are any charges to pay, Virgin should make you aware when you contact them.

Customer support

You can contact Virgin Money customer support online or over the phone. There is a chat option on the lender’s website where there are several automated responses to common queries. If you can’t find the answer you want, and you’re signed up to use internet or mobile banking, you can log in and chat with a real person. If you’re not signed up to either, or an existing customer, you’ll need to give Virgin a call.  

Mortgage calculators

Virgin has a handful of mortgage calculators on its website including options to help you work out how much you may be able to afford on mortgage repayments, the amount you may be able to borrow, and an overpayment calculator.

» MORE: Our mortgage calculators

Customer ratings

Virgin Money has been awarded a customer experience rating of 63% by Fairer Finance for mortgages, which means it ranks joint 10 out of the 23 lenders it reviewed. The ratings are a reflection of how happy borrowers are with the lender, customer trust in a brand, and the lender’s responses to complaints. How clearly they explain their products and the simplicity of the documents provided to customers are also assessed.  

This information from Fairer Finance was correct as of 31 October 2023.

How can I apply for a Virgin Money mortgage? 

You can apply for a Virgin Money mortgage yourself directly or you can apply through an independent financial adviser (IFA) or mortgage broker. 

Virgin has its own mortgage advisers on hand if you want help deciding which mortgage is right for you. However, bear in mind that these advisers are only allowed to recommend Virgin Money mortgages. By comparison, an IFA can advise on mortgages from a range of different lenders, though it’s important to check if they are restricted to choosing from a limited number of lenders or have a whole of market view. 

Note that the Virgin Money mortgages an IFA can access may be different to those that Virgin offers to borrowers who apply directly. Mortgages available via IFAs can have favourable terms, but there may also be a charge for their services. 

» MORE: Do I need a mortgage adviser? 

How to apply for a Virgin Money mortgage

To apply for a mortgage from Virgin Money you should:  

1. Prepare your documents: Virgin will want you to provide certain information, so it’s best to be prepared. This will include details and evidence of your income, monthly outgoings, and existing credit arrangements. 
2. Get a decision in principle (DIP): This will give you an idea of the amount you may be allowed to borrow. Be aware that, unlike some other lenders, Virgin will run a credit check on you to do this, which could affect your credit rating. 
3. Start your application: If you get a DIP, you’re ready to apply for a Virgin Money mortgage.