Woolwich (borrow back)

theelmani

I'm lucky enough to have a lifetime tracker mortgage with the Woolwich (now Barclays) at 0.24 above base rate. Over the years, I've paid off quite a bit of the original loan amount off. I'm now moving house and need to borrow more money. Barclays are saying that I will have to borrown the additional amount at a new (much higher rate) - I thought I could borrow back to the original amount they lent me via a borrow-back or reserve account facility, but they are saying no.

Any ideas or help you can give? (would be greatly appreciated!!!)
Thanks

foreversummer

When you took out the mortgage were you told that it was portable - look on your original offer letter or KFI document.

Even if it is portable, I believe you still have to meet their current lending criteria.

Foreversummer

dimbo61

Hopefully you can transfer your tracker mortgage amount and borrow the rest at a better rate than you would have been able to do had you not made the overpayments!
Making the overpayments has reduced you debt and saved you interest and you may now be able to afford your next property because you need to borrow less and have a good LTV therefore getting the best deal available.
Try and overpay which ever part of the new mortgage has the higher interest rate.
Consider having a fixed rate deal for the new EXTRA amount as you protect yourself from big interest rate rises. GOOD LUCK