Our mortgage features

You can make overpayments of up to 10% of your mortgage balance per calendar year without incurring an Early Repayment Charge, whilst in the initial product period eg. A fixed rate.

Any overpayments will immediately reduce the outstanding loan, resulting in less interest being charged.

You can make a one-off overpayment via your online banking Link opens in a new window, or a regular overpayment which can be collected with your Direct Debit.

Simply call us on 0345 602 8301, to set up a regular overpayment. There are two options, and you can call to change or cancel your overpayments at any time:

1. A fixed regular overpayment
We can collect a set amount every month, which will remain unchanged even if your contractual payment changes
E.g. You ask for £700 to be collected, which includes a £500 contractual payment, and an overpayment of £200

2. Offset regular overpayment
We can collect a set amount above your contractual payment each month
E.g. £200 to be collected in addition to your contractual payment
This means the monthly payment amount may change in line with any changes to your contractual payment

• Overpayments under £500 or made by Direct Debit

If you make an overpayment of less than £500 or make an overpayment of any amount by Direct Debit, we won’t recalculate or change your monthly payment.

Unless something else changes, like a change to the interest rate, then we may need to recalculate your monthly payment. In that case, these overpayments will be taken into account. But if you’d prefer your monthly payment not to reduce, please get in touch with us, and we’ll do our best to help.

• Overpayments of £500 or more (not made by Direct Debit)

We will recalculate your monthly payment. The new monthly payment will start from the 1st of the following month. And we’ll send you a letter to confirm your new monthly payment.

If you’d prefer your monthly payment not to change, and your mortgage term to reduce instead, please contact us and we’ll do our best to help.

If you’ve taken additional borrowing through a secured loan since you began your mortgage, you can make unlimited overpayments on this part of your mortgage, without an early repayment charge.

To ensure your overpayment is attributed to this part of your mortgage borrowing, please contact us on 0345 602 8301. Otherwise, your overpayment will be split across all parts of the mortgage.

You may apply for a one month payment holiday for every nine consecutive full monthly payments you make. The maximum payment holiday period is three months, which can be applied for once you have made 27 consecutive full monthly payments.

Interest will continue to be charged during a payment holiday. Taking a payment holiday will also increase the outstanding balance upon which future loan interest charges are calculated.

When deciding if we will allow a payment holiday, we will assess your ability to repay the revised total mortgage balance and the associated monthly payments, based on your individual circumstances at the time. This will include an affordability assessment, which may require income verification. All payment holidays are subject to Virgin Money's prior agreement.

If you require a little more flexibility, you may be interested in our range of Fully Flexible Mortgages. These flexible products allow you to take advantage of a full range of mortgage features including unlimited overpayments, the ability to apply to borrow back, underpayments and payment holidays.

Please note that all flexible mortgage features are subject to terms and conditions.

If you would like to pay a bit extra each month, or you would prefer to overpay with a lump sum, you can. With our flexible mortgages you can make unlimited, free-of-charge overpayments, provided that the mortgage is not redeemed in full.

As overpayments reduce the amount of money you have borrowed on your mortgage, this could result in a saving of the amount of interest charged.

Following receipt of an overpayment, your outstanding balance and the Interest charged will be recalculated.

If you have a fully flexible mortgage and you make overpayments which total at least £500, then subject to Virgin Money's prior agreement and you meeting our affordability requirements, you may be able to borrow back some, or all, of the amount overpaid.

The interest rate charged on any amount that you borrow back will be at your prevailing mortgage interest rate. The minimum amount that you can apply to borrow back at any one time is £500.

If you have a fully flexible mortgage and you make any overpayments, you may apply to make a lower monthly payment or stop your monthly payment. All underpayments are subject to Virgin Money's prior agreement and your mortgage not being in arrears.

You may apply for a one-month payment holiday for every nine consecutive full monthly payments you make. The maximum payment holiday period is three months, which can be applied for once you have made 27 consecutive full monthly payments.

Interest will continue to be charged during a payment holiday. Taking a payment holiday will also increase the outstanding balance upon which future loan interest charges are calculated.

When deciding if we will allow a payment holiday, we will assess your ability to repay the revised total mortgage balance and the associated monthly payments, based on your individual circumstances at the time. This will include an affordability assessment, which may require income verification. All payment holidays are subject to Virgin Money's prior agreement.