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Categories:Mortgages

Virgin plans to double Northern Rock lending

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Virgin Money plans to double the value of mortgage lending that Northern Rock advanced.

It says it aims to advance around £45bn in mortgage loans over the next five years. The target means it would lend an average of £9bn a year for the next five years, although it will not confirm how the money would be distributed over the period.

In 2010, Northern Rock’s gross lending reached £4.2bn and, while the figures have not yet been finalised, a Virgin spokesman says gross lending for 2011 was around £5bn.

Last month, the Council of Mortgage Lenders downgraded its gross lending forecast for 2012 from £150bn to £133bn due to the likelihood of weak econ- omic activity. It also cut its 2011 gross lending estimate from £140bn to £138bn.

Virgin bought Northern Rock’s “good bank” in November in a deal worth £747m, which could rise to over £1bn.

Industry consultant Michael White says: “This is good news for the market. Virgin is saying it has grand plans and intermediaries will benefit from that.”

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Readers' comments (6)

  • This is the best joke I have heard all day! As I have submitted a mortgage application to Northern Rock / Virgin Money on 5th Dec 2011 and have stil yet to have a correct mortgage offer issued to client.

    The case in question was a son purchasing a large semi detached house from his father at a discounted price. So the father could purchase his own smaller property and the son could use the new property as a buy to let investment for himself. The father was to have no ownership or rights to his old house. In essence this deal is a very simple transaction. I am sad to say that Northern Rock / Virgin Money have been less than helpful and in fact only started asking questions of the solicitor after I submitted a complaint. Needless to say we are still waiting for our mortgage offer.

    At one stage I even had the call centre say that they don't recognise business to business complaints. It is not very often that I get so annoyed to type up a response on a forum like this particularly about an ongoing complaint situation. Northern Rock / Virgin Money are not alone in their approach to brokers

    I have not disclosed my name to protect my client and to a certain extent myself.

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  • Mr Angry, you are not alone. in 2011 my only 3 cases to be rejected was with NR BTL having been discussed in advance of application; to add insult it took them 6 weeks to come to this decision. Hopefully the new regime will review its shortfall’s. A shakeup of their BDM’s might help too as I have not been impressed by mine.

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  • I have a BTL app in for myself that is taking ages!

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  • I submitted an application for a straight purchase at 70% LTV on 23rd December. Without wanting to bore you all its with the details I'm still waiting. The staff could do with a trip to the training department and a good kick up the rear. One or two new managers might help. Just checked on the website and average offer time is 29 days. And no doubt thats 29 working days then a further 2 days in the post so really 6 weeks. Come on!!

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  • I thought I would give an update to the debacle above as I have just heard from Virgin Money and the client's solicitor that they are happy for the case to progress, this after 7 weeks and this is giving them a week off for the Christmas period.

    Needless to say I will be putting a formal complaint in and an attempt to gain compensation for my extra hours of work although I don't hold out much hope of getting any.

    This is not the only lender that I am having problems with on a regular basis and I do think it's disgraceful that lenders are not gearing themselves up for the extra checks that they are having to make on each individual case as it is obvious times have changed in the lending world. Surely it is the responsibility of the regulator to fine firms that do not have adequate control systems including staffing levels in place.

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  • very poor, its still northern rock with their very slow and poor service using the virgin branding

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