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Woolwich current account reserve - good loan?
I am trying to decide whether this is a good option for borrowing £5000 and wondered if anyone else has used this feature, or has any advice.
We have our mortgage with Woolwich and they allow a 'borrow back' feature which will allow us to borrow the money which we have already paid back. This is effectively an overdraft on our open plan current account. The rate is their standard variable, 6.59%. It seems more flexible than a loan because we control the repayment schedule -they only require an interest payment to be made each month. we intend to set up a direct debit to pay off £200 a month, but like the flexibility of being able to cancel this if things get tight (which is likely in about 6 months) and just pay the interest payment for a bit. The extra borrowing is secured on the house. What do you think? Is it a good option or would we be better getting a more traditional loan? Credit rating is ok, so this could be done.
We have our mortgage with Woolwich and they allow a 'borrow back' feature which will allow us to borrow the money which we have already paid back. This is effectively an overdraft on our open plan current account. The rate is their standard variable, 6.59%. It seems more flexible than a loan because we control the repayment schedule -they only require an interest payment to be made each month. we intend to set up a direct debit to pay off £200 a month, but like the flexibility of being able to cancel this if things get tight (which is likely in about 6 months) and just pay the interest payment for a bit. The extra borrowing is secured on the house. What do you think? Is it a good option or would we be better getting a more traditional loan? Credit rating is ok, so this could be done.
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