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    • boatman
    • By boatman 16th Oct 16, 12:56 AM
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    boatman
    Barclays / Woolwich Mortgage reserve
    • #1
    • 16th Oct 16, 12:56 AM
    Barclays / Woolwich Mortgage reserve 16th Oct 16 at 12:56 AM
    There has been another round of letter trying to reduce the mortgage reserve amount. My mortgage dates back over 10 years, is there anything to stop them changing it? They are wanting to wipe off 10's of thousands and take it down to a few hundred. I may not use even a quarter of it in a few years to do some updating, but as it was part of the original deal I'm not happy to let it go, as you won't get it back.

    Any thoughts?
Page 1
    • muhandis
    • By muhandis 16th Oct 16, 7:59 AM
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    muhandis
    • #2
    • 16th Oct 16, 7:59 AM
    • #2
    • 16th Oct 16, 7:59 AM
    In the letter have they asked for your agreement to reduce the overpayment reserve or are they saying that they will do it by xxx date?

    If the former, do they say what will happen if you do not agree to this change?

    From a quick search on other forums, a couple of people appear to have ignored this letter resulting in Woolwich going ahead with the change anyway saying they never heard back from the customer.

    There has been another round of letter trying to reduce the mortgage reserve amount. My mortgage dates back over 10 years, is there anything to stop them changing it? They are wanting to wipe off 10's of thousands and take it down to a few hundred. I may not use even a quarter of it in a few years to do some updating, but as it was part of the original deal I'm not happy to let it go, as you won't get it back.

    Any thoughts?
    Originally posted by boatman
    • getmore4less
    • By getmore4less 16th Oct 16, 9:34 AM
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    getmore4less
    • #3
    • 16th Oct 16, 9:34 AM
    • #3
    • 16th Oct 16, 9:34 AM
    They are getting tight on these reserves as they messed up the implementation so could come unstuck if people complain or get into trouble.

    Loads of letters to reduce the limits and warn you about paying it off before the mortgage term ends if you use it.

    In the past they have always given the option to ask to keep it but if you do nothing whatever is in the letter happens.

    PHONE them up and say you want to keep it and write a letter.

    We use ours as the mortgage is cheap and we get better interest elsewhere.
    • amnblog
    • By amnblog 16th Oct 16, 10:04 AM
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    amnblog
    • #4
    • 16th Oct 16, 10:04 AM
    • #4
    • 16th Oct 16, 10:04 AM
    We have not seen Barclays demanding immediate settlement. You should be able to repay any debt incurred on the reserve account under the original terms.

    Reducing an unused limit is a different issue.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Thrugelmir
    • By Thrugelmir 16th Oct 16, 11:16 AM
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    Thrugelmir
    • #5
    • 16th Oct 16, 11:16 AM
    • #5
    • 16th Oct 16, 11:16 AM
    Providing facilities costs lenders money. If facilities remain unused then on a commercial basis reducing them makes total sense. Suggest you request a reduction to a level that suits you.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • boatman
    • By boatman 16th Oct 16, 4:10 PM
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    boatman
    • #6
    • 16th Oct 16, 4:10 PM
    • #6
    • 16th Oct 16, 4:10 PM
    I contacted them but they still cut it by 95%, not what i wanted. Just think that regardless of your situation they want to cut it to the bone. They wanted to cut it to £1000. What right do they have to cut it given its a lifetime tracker, so no requirement to check your ability to pay during the term of the mortgage, never missed a payment. Do they have a right to insist on credit checks?
    Its based on your repayments already made, and the equity in your house. I would just sell they house at the end of the mortgage, so there are no concerns about not being able to pay as the mortgage is only 15% of the value.
    Last edited by boatman; 16-10-2016 at 4:15 PM. Reason: ll
    • Thrugelmir
    • By Thrugelmir 16th Oct 16, 4:39 PM
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    Thrugelmir
    • #7
    • 16th Oct 16, 4:39 PM
    • #7
    • 16th Oct 16, 4:39 PM
    Its based on your repayments already made, and the equity in your house. I would just sell they house at the end of the mortgage, so there are no concerns about not being able to pay as the mortgage is only 15% of the value.
    Originally posted by boatman
    The reserve is an secured overdraft facility repayable on demand. Have you read your mortgage contract terms and conditions. Barclays is more than likely enforcing a clause within the contract.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • boatman
    • By boatman 16th Oct 16, 9:17 PM
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    boatman
    • #8
    • 16th Oct 16, 9:17 PM
    • #8
    • 16th Oct 16, 9:17 PM
    The reserve is an secured overdraft facility repayable on demand. Have you read your mortgage contract terms and conditions. Barclays is more than likely enforcing a clause within the contract.
    Originally posted by Thrugelmir
    Sadly not got it to hand, but have got it. As i said just wonder where they stand with regard to trying to push it. The fact that they have not withdrawn the reserve suggest they have to give you something..
    • getmore4less
    • By getmore4less 16th Oct 16, 10:13 PM
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    getmore4less
    • #9
    • 16th Oct 16, 10:13 PM
    • #9
    • 16th Oct 16, 10:13 PM
    Just tell them you want to keep it all or a level you are happy with

    So far that has not been a problem as far as I know for thoset hat have done that.

    The primary term is it must be repaid on the same term as the mortgage.


    ................
    There are a number of issues as there are no other payment terms so you have to plan as it will not be covered by the normal payment and interest accrues.
    • Thrugelmir
    • By Thrugelmir 16th Oct 16, 10:14 PM
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    Thrugelmir
    Sadly not got it to hand, but have got it. As i said just wonder where they stand with regard to trying to push it. The fact that they have not withdrawn the reserve suggest they have to give you something..
    Originally posted by boatman
    Use the facility perhaps if you don't wish to lose it.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • boatman
    • By boatman 16th Oct 16, 10:57 PM
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    boatman
    Use the facility perhaps if you don't wish to lose it.
    Originally posted by Thrugelmir
    Yes, I was using it, but not a lot. Obviously they would prefer to lend bigger amounts at a higher rate, they are not a charity. But it was part of the original deal, it may well have been over ten years ago, but they would be quick enough to say no if I decided to try and change the terms, on that basis alone they should not be allowed to withdraw it when they feel like it..
    Last edited by boatman; 16-10-2016 at 10:59 PM. Reason: Ll
    • Thrugelmir
    • By Thrugelmir 16th Oct 16, 11:22 PM
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    Thrugelmir
    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.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • getmore4less
    • By getmore4less 17th Oct 16, 6:16 AM
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    getmore4less
    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
    • By boatman 26th Oct 16, 12:48 PM
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    boatman
    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
    • By getmore4less 26th Oct 16, 4:09 PM
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    getmore4less
    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
    • By Thrugelmir 26th Oct 16, 6:21 PM
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    Thrugelmir
    The affordability checks are not compulsory for people with current mortgages.
    Originally posted by boatman
    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.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • boatman
    • By boatman 27th Oct 16, 11:20 AM
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    boatman
    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?
    Last edited by boatman; 27-10-2016 at 11:36 AM. Reason: ll
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