In these times, it is not uncommon for people to get a request for a personal loan.
It looks like you have the option for Third-party Administration of the loan.
Virgin Money is a TPA for servicing personal loans. There are fees for tiered levels of administration and service.
It looks like the will TPA a retirement mortgage between family members also... could be a reverse mortgage.
Welcome to Virgin Money
However, unless there is a credit problem... I would think the family member would be able to borrow directly from a Mortgage lender. I suppose it puts someone else in the position of collecting. But if the family member was having problems, they would probably ask to have the loan forgiven.
I am not seeing the advantage of using the service.