The best money saving idea since ... sliced bread?? (Virgin One)

Member Name: xcom

Product:	Virgin One
Date:	02/06/01 (2660 review reads)
Rating:

Advantages: everything - but especially the money I've saved on my mortgage

Disadvantages: none

This has to be one of the greatest finds of the 20th Century (I found it in 1999 before you start arguing!!).

The history - at 25 I decided to buy a flat in sunny Worcester. The flat cost £51,000 and I needed a mortgage of £40,000. Having gone through the estate agent I was buying from to find a mortgage I eventually ended up with a mortgate from Northern Rock Building Society. They gave me £1000 cashback and everything was hunky-dory!!.

Then in December of 1998 I got my first mortgate statement. I'd paid something like £275 a month for 11 months and I now owed them £39,750!! I was shocked!!! Yes, my parents had warned me, but I was still not prepared for the fact that in a year I had only paid off £250 of the original loan!!

The following year - around August I spotted the Virgin One account. The idea was, you put all your money (debts, earnings and savings) into one account and they all go together to give you one "current" account that you can control with ease. The biggest plus however was still to come - the interest on your debt is calculated daily!!

I asked my parents what they thought - and they pointed out that I was old enough to make my own decisions - a sure sign that they didn't approve but didn't want to say so! I did it anyway.

I filled in the forms, got a valuer round my flat (which cost me £150), got a solicitor (another £150) and changed my mortgage. Northern Rock were suitably outraged and insisted I give them their £1000 "gift" back.

Finally in December I got my chequebook, visa and switch cards and my first statement!! It said I owed Virgin £40,500. My god - I owed them more money than before I started!!!

However, now, 18 months on as I get my statement from May telling me I owe them £29,000 I realise I had done the right thing. When I started I paid £205 a month interest on the debt - because the interest is calculated daily and my debt has decreased
I paid just £167 in May!!!

This has to be the best financial move I have ever made. Every month I can see the debt decreasing and the interest going down. The are other perks too ...

Because I am so far ahead of my payments (I said I'd pay it off in 25 years) I could write a cheque for £10,000 and Virgin would honour it!!! Plus they alter the interest rates the day the Bank of England does. This combined with an interest rate of 3-4% for credit balances (also calculated daily), the fact that they did all the work in switching my accounts over (direct debits, etc) and the occasional Virgin perks (money off Virgin mobile phones) means that I simply can't lose.

All I can say is that Richard Branson is giving the people what they want - maybe he should run for Prime Minister!!! My advice is get in touch with Virgin and see if they can save you money!!

Summary: