Woolwich / Barclays open plan

BDi_Chopper

Hi all,
What a fantastic forum this is!

I've got a Barclays (was Woolwich) open plan mortgage which is variable.

My question is this. Every 6 months the amount I have paid back is calculated and I have the option to re-use this money. I have cheque book and because I bank with Barclays, I can also do a direct transfer I believe.

Anyway, my question..... Is it worth withdrawing this money and using it elsewhere? I'm in the process of slimming down my equitity portfolio at the moment and putting it into safer NS&I premium bonds. I thought it might be a risk free way of upping the amount of bonds I have perhaps? I believe my monthly payment will remain the same.

Anyone done this / have any advice?

TIA
Chops
:j

minimike2

This is the openplan reserve, now called a mortgage current account.

If you withdraw from this you have to set up a monthly standing order to cover the payments, which as a minimum must cover the interest, which is charged on the standard variable rate, unless the account is in an offset arrangement, in which case its charged at the offset mortgage rate.

What you are contemplating, is investing money secured against your principal residence, which is NOT risk free.

Not a good idea IMO.

BDi_Chopper

Many thanks.