Woolwich mortgage reserve account

begbeer

Has any one had any experience in the Woolwich mortgage reserve account, we can draw upto £47K from ours and due to an loft conversion will be using 20k of it for a period of only two months, (until we can draw dividends from our business in January), Do they increase the monthly mortgage payments to cover interest on this or is it a seperate account, called into our local branch but they do not seem to have any idea

getmore4less

Is this an offset or not?

Offset the interest rate same as main mortgage and the reserve just sits in the oofset pool so the normal mortgage payment is made.

Not offset rate will probably be the SVR.

Check your T&C I seem to remember it says in there what happens re: payments.

Long time since I read them and they are not handy but I think they just add the interest to the normal mortgage account so you need to make arrangments for this but no penaties for not just more interest the next month.

lgardner

i believe with this what happens is that it works as an overdraft facility, so if you had 40k in your reserve, and you borrowed 20k you would have interest every month on the 20k you owed, and the extra payments you would pay on your mortgage account would be paid off the interest of the 20k and the rest off the reserve. Basically the same as an overdraft