Virgin Money today revealed details of its new mortgage product, the Reward Me Home Loan.
In response to consumer research, which showed mortgage borrowers can feel under-valued, unappreciated and disempowered in their relationships with lenders, the variable and fixed rate loans will reward customers with frequent flyer points and exclusive Virgin-branded benefits.
In an Australian first, Virgin Money will reward its customers with Velocity Frequent Flyer Points on settlement, each month and on specific anniversaries – together with exclusive benefits on related Virgin Money products and offers from other Virgin businesses including Virgin Australia, Virgin Mobile, Virgin Wines and Virgin Active.
According to the group, customers will earn 10,000 Velocity Points for every $100,000 borrowed at settlement, 1,000 Points per month for each loan split, plus 30,000 bonus Points every three years.
“Australians are well aware of the value their mortgages deliver to lenders. But they do not believe this is always reflected in the service they receive,” Virgin Money CEO Greg Boyle said.
“So we’re doing something about that. Virgin Money’s Reward Me Home Loan will be as competitive as you’d expect – with some very Virgin points of difference that will reward our customers upfront and throughout the life of their loan,” he said.
Virgin Money will also offer discounted variable interest rates based on the size of a customer’s borrowings and loan-to-value ratio. In response to customer feedback, Virgin Money will publish its rates and the discounts available on its website.
“Not everyone knows that home loan interest rates are often negotiable. Others are not comfortable to ask. Some lenders take advantage of that. We’re all about transparency and recognising value. Simply by visiting our website, customers will know exactly what rate discount they’ll be entitled to, based on their borrowings,” Mr Boyle said.
“We’re rewarding customers for not only bringing us more business but also for the level of savings they have made for their deposit.”
Virgin Money will announce its home loan interest rates in May.
The Virgin Money home loans will initially be sold through mortgage brokers and serviced via a Virgin Money customer contact centre.