Name and Address
Clydesdale Bank PLC (trading as Virgin Money), Jubilee House, Gosforth, Newcastle upon Tyne, NE3 4PL
Purpose of Credit
The credit can be considered for residential house purchase, remortgages and additional borrowing (including capital raising).
All requests will be subject to our lending policy at the time.
The Property
All credit provided by Clydesdale Bank PLC (trading as Virgin Money) under a regulated mortgage contract will be secured by a first legal charge over a residential property within the United Kingdom.
Residential Mortgage Terms
The minimum term for a new residential mortgage is 5 years.
The maximum term for a new residential mortgage is 35 years.
There is no set minimum term on additional borrowing applications, for an existing residential customer, the term minimum will depend on the product you choose.
Our Types of Interest Rates
We have a range of products available including both fixed and tracker rates.
Tracker rates change in line with the Bank of England base rate. Your monthly payment becomes cheaper if rates fall, more expensive if rates rise.
Fixed rates Fixed rates remain the same for the duration of your fixed rate period (2, 3, 5, 7, 10 or 15 years) giving you the certainty of fixed monthly payments for a set period.
Standard Variable Rate is our standard interest rate which can be varied at any time during the duration of the mortgage. Other interest rates may be available from time to time but in all cases, full details of any applicable interest rate(s) will be provided in any Illustration.
Representative Example
A mortgage of £164,500 payable over 25 years on a fixed rate for 2 years at 5.61%, followed by our current Standard Variable Rate of 8.24% for 5 years and our Loyalty Variable Rate of 7.99% for the remaining 18 years, would require 24 monthly payments of £1,016.26, 60 monthly payments of £1,270.51 and 216 monthly payments of £1,249.09 plus one initial interest payment of £783.78.
The total amount payable would be £371,233.06 made up of the loan amount plus interest (£206,708.06) and a funds transfer fee (£25).
The overall cost for comparison is 7.8% APRC representative.
Costs Associated with Residential Mortgages
Our tariff of mortgage charges will detail any additional costs that may be applicable during the term of your mortgage. This will be provided with any Offer of Loan.
Repayment Options
Repayment - Pay off some of the interest on your mortgage, plus some of the original loan amount every month. Once your payments have finished, the whole mortgage is paid off.
Interest only - Only pay off the interest on your mortgage each month. You'll need to make other arrangements to pay off the original loan amount that you borrowed, such as a savings or investment plan. This option is not available for first time buyers and the maximum loan to value (LTV) is 75%, subject to individual circumstances.
Part and part - A combination of the repayment and interest only. With this mortgage, when your payments finish you'll still need to pay off the remainder of the original loan amount. You will need to make arrangements to pay off this element of the loan, such as a savings or an investment plan. This option is not available for first time buyers and the maximum loan to value (LTV) of the interest only element is 75%, subject to individual circumstances.
Your Illustration and Offer of Loan will detail the number, frequency and the amount of each payment.
It is possible that after making all your contractual repayments that a small residual balance may remain outstanding at the end of your mortgage term. We will contact you should we require any further payment, although in many instances this will not be required.
Property Valuation
In order for us to consider any new application for a residential mortgage, a valuation of the property (which will provide security for the credit) will be required.
Virgin Money is responsible for obtaining the valuation and it is for our sole benefit of assessing the adequacy of the property as security for the loan.
Please check our product range incentives. Some offer free valuations.
House Building Insurance
With all Virgin Money Mortgages, your property must be adequately insured under an acceptable buildings insurance policy.
If You Don't Repay Your Mortgage
The loan will be secured over the property. This means that if you are unable to meet your repayment obligations under the regulated mortgage contract we may take possession of the property (after obtaining any necessary court order) and sell it to repay the debt.