FCA has issued guidance on how they expect mortgage lenders and administrators to treat customers fairly during this coronavirus (Covid-19) situation. Many UK lenders like Virgin Money are allowing their customers to take a mortgage payment holiday BUT there is a catch.
Interest will still be charged during the payment holiday period and your monthly repayments will be recalculated to take into consideration the increase in your balance.
This means that at the end of the 3 months customers will be worst off than when they started, lenders like Virgin Money will make an additional 3 interest payments of thier customers mortgage, with an estimation of £1000 profit generated from each of their customers.
With an estimated 3 million customers in the UK, Virgin money is set to increase their profit by at least 3 BILLION pounds if all their customers take a mortgage holiday, taking advantage of the worst pandemic outbreak of modern history.
Virgin Money bad online reputation
Virgin Money latest comment from George Bailey on Trustpilot says:
I had no idea Virgin Money was making even more money from CoronaVirus outbreak, this is a disgrace. They basically still charging interest over mortgage holidays, pocketing an extra 3 months of interest on my mortgages. You are evil ! Shame on you, taking advantage of your customers like that!
With over 81% 1 star rating on trustpilot, this listed company isn’t new to negative reviews from unhappy customers.
Virgin Money stock price has been gone down since the outbreak but saw a surge after announcing their plans to make additional money from charging interest over mortgage holidays.
What happens if you are a Virgin Money Customer asking for a mortgage holiday
If you pay by Direct Debit Virgin Money will automatically suspend your payment, however, if you pay by any other method you will need to make your own arrangements to stop your payment while the payment holiday is in place.
You will receive a letter that confirms your payment holiday, then in the final month of your payment holiday, Virgin Money will write to remind you that the new payment will resume the following month.
Virgin Money to axe 500 jobs and merge 52 branches to maximise profits
Virgin Money announced its plan to axe 500 jobs and close or merge 52 branches.
The bank said it would completely scrap 22 branches, while it would consolidate a further 30 within one of its nearby locations.
The announcement comes after Virgin Money concluded its merger with Clydesdale and Yorkshire Banking Group (CYBG) back in 2018.
On the other hand, Lloyds decided to delay 780 job cuts due to the outbreak.