Virgin Money says it is considering bringing back a current account-style mortgage similar to the Virgin One Account that was launched in the mid to late 1990s.
In 1997 Virgin Direct, which was the previous name for Virgin Money before it was rebranded in 2002, launched The Virgin One account as a joint venture with Royal Bank of Scotland and essentially pioneered the offset mortgage in the UK.
Then from January 2003, RBS became the majority shareholder and the company relaunched as The One account with it becoming a full-time RBS brand.
Speaking to Money Marketing’s sister publication Mortgage Strategy, Virgin Money’s head of intermediary sales Richard Tugwell confirmed a current account mortgage is one of the things that Virgin Money is currently looking at.
He says: “We want to ensure we are innovating in the right way in the market and potentially current account mortgages and things like that will come our way.”
While he is at pains to point out that plans for a current account mortgage are still at the conceptual stage, it is something that brokers have been calling for since it was first announced that Sir Richard Branson’s Virgin Group was buying Northern Rock on 17 November 2011.
Brokers told Money Marketing last year that they would like to see Virgin Money relaunch its current account product.
Tugwell adds: “This is the future we are looking to, nothing is baked in at the moment but we would expect at some stage to move that way and it is obviously an account that was enjoyed in the past.”