Barclays / Woolwich Mortgage reserve

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  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Much has changed in the past 10 years. Much is going to change in the next 10 years as well. There is little that we as consumers can do to change that.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    Depends which set of T&C you are under.

    I have a mortgage older than yours.

    my T&C are part of Barclays Flexible Mortgage Facility (AD275 09/01)

    33.4 We may vary(either by increasing or decreasing) or withdraw the amount of any mortgage reserve and the period it is available by giving 14days notice.....

    33.6 Any amount owing to us under the Account will be imediaetly payable to us on demand

    more terms in 37 about closure of the account

    As has been said if you ask you will probably get to keep it.

    IT is only those with offsets that get to keep their cheap rate other mortgages the reserve is at the SVR.
  • boatman
    boatman Posts: 4,699 Forumite
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    The affordability checks are not compulsory for people with current mortgages. That being the case, surely they cannot use that to force people to accept a lesser reserve account figure? I was told that the only way to get back my original reserve amount was to do a 'quick' check.
    Its not unreasonable for me to argue that the bank were lying to me?
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    Did you tell them you wanted to keep the account and the reserve at athe level you have after any of the letters you had most imprtantly the last one?

    All the letters I have had make it clear that if you want to keep the mortgage account reserve you have you must tell them, the default action is to do what the letter says. in my cases a reduction to a lower level.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    boatman wrote: »
    The affordability checks are not compulsory for people with current mortgages.

    Lenders have the option to perform the necessary checks when there#s a change. Their business so their right. There is a difference between and a mortgage and an overdraft reserve. Overdrafts have always been repayable on demand.
  • boatman
    boatman Posts: 4,699 Forumite
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    edited 27 October 2016 at 11:36AM
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    They sent the letter, i called, they told me to keep the reserve i had to do a quick check, did it then told me they were reducing it. The mortgage is less than 20% of the value, even with the reserve it would still only be 30%. Strikes me that they just want to reduce the amount regardless. They would not go to the effort of sending out letters if there was not something in it for them, the mortgage has run for over 10 years without them feeling the need to change it. I can't phone them up and say I don't want to pay interest this year, in fact I can't change anything, is that a fair contract?
  • Jah71
    Jah71 Posts: 2 Newbie
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    I have a Barclays mortgage reserve account which I've used to purchase some property. My question is I get my monthly statement with future interest due, however there is no note on the statement how this arrived at, i.e. The rate of interest etc just interest due, are Barclays obliged to inform you of more information on statements and have they broken any of there requirements

    John
  • getmore4less
    getmore4less Posts: 46,882 Forumite
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    Jah71 wrote: »
    I have a Barclays mortgage reserve account which I've used to purchase some property. My question is I get my monthly statement with future interest due, however there is no note on the statement how this arrived at, i.e. The rate of interest etc just interest due, are Barclays obliged to inform you of more information on statements and have they broken any of there requirements

    John

    Unless you have an offset(when it is the mortgage rate) it is SVR it should be on your mortgage statements.

    My monthly statement is clear on the rates(i have an offset).
  • Jah71
    Jah71 Posts: 2 Newbie
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    My account is called a mortgage current account. It states on the statement the amount if interest to be applies the following month in money terms, but there is no sign of the interest rate of the monthly statements, I also don't get an annual summary !

    Cheers

    John
  • DVDKEV
    DVDKEV Posts: 4 Newbie
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    Just posted this on an older thread, then found this one so adding here incase anyone can help;

    I received the same letter last month. I rang to retain the reserve limit and whilst they agreed to do so, they stipulated that though my mortgage remains at BOE base rate plus 0.95%, any amount drawn from the reserve accrues interest at their variable rate of something like 4.75%. I am surprised at this and having read the posts here, it suggests that the reserve interest rate in other peoples cases mirrors the mortgage interest rate else it would seem daft to draw against the reserve to pay your monthly mortgage repayments.

    Can anyone confirm whether they have a BOE base rate plus 0.95% mortgage (currently 1.2%) and their reserve is set at the same rate? I originally took out the mortgage as a 10 year fix in 2006 with Woolwich having read about it on here. I took it thinking it was an offset mortgage but when I spoke to them 7 years into it they said it wasn't an offset so any savings I had with the savings account that they provided when the mortgage was set up weren't having any effect on my repayments nor reducing interest on the mortgage which upset me at the time but I could find no paperwork to take it further. Coming off last year onto an interest rate of 1.2% was great but I am surprised to find that any reserve isn't at the same rate.
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