Virgin Money is the brainchild of Sir Richard Branson. This unique lending program offers social loans which allow family, friends, and private funding sources to fund personal loans. Borrowers have access to online tools including promissory notes, loan contracts, and payment tracking software.
Virgin Money is not a bank, but plans are in the works for this to occur. In January, 2010 Branson acquired Church House Trust, a private retail banking business. Once the acquisition is complete, Virgin Money will offer additional financial products including checking and savings accounts and mortgage loans.
Currently, members can apply for three types of loans including personal, business, and mortgages. Family and friends are often hesitant to participate in private loans for large purchases such as real estate as it is not uncommon for relatives to default on personal family loans. Establishing a private lending account can minimize risks as contracts are legally-binding. Members purchase loan packages to have access to necessary forms, documents, and software. Prices range from $99 to over $500.
When members require financing to purchase real estate or to start or expand a business, they can apply for peer-to-peer loans. Private funding sources offer financing and payment schedules are established using legally-binding contracts.
Funding sources establish the interest rate assessed, but must comply with state usury laws. It is against the law for private funding sources to charge higher rates of interest than banks. Applying for social loans through Virgin Money often results in reduced interest rates. This in turn, provides borrowers with reduced monthly installments and enables them to repay borrowed funds more quickly.
Social loans can be obtained for most anything requiring financing. Members have used Virgin Money loans to pay for their college education, buy a car, purchase real estate, pay off credit cards, and start or expand a business.
Individuals in need of home mortgage loans may want to consider using Virgin Money Family Mortgage. Loan packages include the ability to create loan proposals to attract lenders, personal financial coaching, lien management, and a payment processor account.
Virgin Money offers the option to have real estate proposals submitted to private money lenders. When financing is obtained, Virgin Money records property transfers and mortgage contracts through appropriate agencies. Record of payments are provided to PRBC, a credit reporting agency used to monitor credit when financing is obtained through non-traditional lenders.
Real estate investors who engage in owner will carry financing such as lease purchase option agreements or seller carry back trust deeds may find Virgin Money a good option for recording payments.
Buyers engaged in creative financing loans are required to obtain bank financing once their real estate contracts expire. Payment tracking software provides buyers with required information to prove they have made seller-financed payments on time and in full.
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