Virgin Money thoughts

Discussion in 'Loans & Mortgage Brokers' started by Spoony, 25th Feb, 2017.

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  1. Spoony

    Spoony Well-Known Member

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    17th Aug, 2016
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    My broker has put forward Virgin Money Home Loan as an option for my first IP purchase. My PPOR is with Bank Australia (for personal/ethical reasons), + Bank Aust's PPOR rate is pretty good, the equity/investment split I have with them isn't to bad.

    I figured this is the best place to get a read on an option such an option. I'm wary, I'm pretty sure Virgin has pulled out of the finance market previously (I had a Virgin credit card that was moved over to Westpac), so I ponder if they decided to the do the same, what then :/

    My position to gain finance isn't dire as my serviceability and need to only go to 80% and still having greater borrowing power vs IP purchase and equity/deposit in reserve
     
  2. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Is this a rate based decision? Virgin are BoQ from memory, and if you're using LMI I would avoid.

    I'm not quite sure what your last sentence means. Are you saying you won't be buying
    more IPS?
     
  3. Spoony

    Spoony Well-Known Member

    Joined:
    17th Aug, 2016
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    Location:
    Brisbane
    Thanks for the feedback Jess.
    Yes the broker explained they use BOQ wholesale funding and was very knowledgeable on their exit and re entry and associated concerns, and explained some similar moves and activities by other lenders in Aust, HSBC apparently. Their current move has targetted broker lending and they are soon to offer savings and transaction products.

    I talked to him earlier and his indepth understand was helpful. Not using LMI. I'm quite risk averse so would rather avoid.

    I'd had a few drinks and smashed that post out as dinner guests arrived so your confusion of my poor English is understandable.

    I meant to say my serviceability with this first IP isn't an issue for most/any lenders and my deposit will be 20% with plenty of spare equity in my ppor.

    I plan to purchase further IPs.
     
  4. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

    Joined:
    18th Jun, 2015
    Posts:
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    Location:
    Perth WA + Buderim Qld
    If your using 20% it's fine - just reassess before you buy the next one and so on to be sure you can get equity and extend IO terms before you max out.
     
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