When you hear the name Virgin, you’re likely to picture holidays and music. Over the last couple of decades, however, it’s also gained a reputation in the world of finance. Operating under the brand of Virgin Money, it offers financial services and Virgin Money Personal Loan in Australia, South Africa, and the UK.
What is a Personal Secured Loan?
It’s not always possible for people to buy the things they want so sometimes they need to borrow money. Perhaps they’re long overdue a holiday but haven’t got the spare cash. Their home might need some urgent renovations. There are many different scenarios that call for the immediate injection of some cash. This is when a personal loan can come to their rescue.
There are both unsecured and secured personal loan available. A secured loan is a loan that’s backed by collateral. This might be applicants home or car. Virgin Money uses collateral as payment, should the borrower not pay back the loan as agreed.
People with a Virgin Money mortgage are eligible to apply for a secured loan.
How Much Can Applicants Borrow with Virgin Money Personal Secure Loan
The smallest amount applicants can borrow is £3,000. The upper limit depends on the amount of equity in their mortgaged property. If there’s enough, it is possible to borrow up to a maximum of 85% of the property’s value. Applicants can borrow up to £2 million with a personal secured loan.
If, however, the applicant has a buy-to-let mortgage they reduce the maximum amount to 80% of the property value, up to a maximum of £1 million.
The current loan rate is the Standard Variable Rate (4.79%)plus 1%. For by-to-let customers the rate is the Buy To Let Variable Rate (4.99%) plus 1%. Other charges apply to this type of loan, for example a charge of £199 to cover administration and £30 for a funds transfer fee.
Applying for Virgin Money Personal Loan
Applicants who want to apply for loan are advised to speak with a mortgage adviser. They will be able to at the applicants different circumstances and discuss whether a personal secured loan is the answer. There is a telephone number to ring and lines are open from 8am to 8pm, Monday to Friday, 9am to 3pm on Saturdays, and 10am to 3pm on Sundays.
Applicants for this type of secured loan still have to prove they can afford to pay the loan back, even though they already have a mortgage with Virgin Money. The usual lending criteria also have to be fulfilled.
Repayment terms for a Virgin Money Personal Secured Loan depends on the agreement made with the company. A monthly repayment amount is agreed, depending on how much the applicant can afford to borrow and the time they want to borrow the money for.
Borrowers generally make repayments over a five to 35-year period. However, for those with a buy-to-let mortgage the maximum length is reduced to just 25 years.
If you wish to take out a loan of £7,500 over 5 years, your monthly repayments would be £134.65. The APR on this is 3.0% (fixed).You would have to repay the bank £8,078.47 in total. Please note that the APR wouldn’t be over than 29.9%.