This Commissions Guide article relates to Virgin Money Residential loans.
Connective will maintain this guide to the best of its ability but cannot guarantee that the information within is complete, and/or in line with the latest guidance and policies of the lender. If you believe anything is missing or inaccurate, please contact us.
Residential Loans
Contents:
Commission Rates
| ex GST | inc GST |
Upfront | 0.6% | 0.66% |
Trail | 0.2% | 0 22% |
Upfront Commission
Upfron commission is calculated based on the drawn down loan balance on the 5th calendar day after the date of draw down, and net of any linked offset and redraw facility and is paid on day 6 adjusted balance.
Any loan settlement occurring in the last 5 days of the month the upfront commission will be held over to the next month, the upfront commission is then calculated and paid on the day 6 adjusted balance and payment made the following month e.g. If the loan settles on the 26th June commission will be calculated on day 6 adjusted balance 1st July and be paid in August commission run.
Commission for variations involving increases will be calculated based on net debt increase on the 5th calendar day after the increase is drawn down, net of any linked offset and redraw facility. The net debt increase is established by calculating the difference between (i) the loan account balance minus any offset or redraw credit on the day before the date of draw down, and (ii) the loan account balance minus any offset or redraw on the 5th calendar day following the date of draw down.
Trail Commission
Trail commission is calculated monthly on a loan facility on the daily balances of that loan facility account (net of balances held in any applicable mortgage offset arrangements) from the date the facility settles.
For variations trail will be paid on revised total facility balance calculated on variation on the daily balances of that facility account (net of balances held in any applicable mortgage offset arrangements) from the date that variation settles.
Virgin Money will not pay trail, where a borrower is in default/arrears under their loan facility for a period of sixty (60) days or more.
Clawbacks
Period | % Clawback |
0-12 Months | 100% |
13-24 Months | 50% |
Facilities not drawn down
If at least 80% of the loan facility limit has not been drawn down between 6 months to 12 months of credit being made available under the loan facility, broker will be required to repay 50% of the upfront commission.