Barclays mortgage reserve account

begbeer

Does anyone know how this actually works as went into the bank yesterday and they do not seem to.
My reserve stands at £47k and I need to borrow 20k from it to do a loft conversion but will only need it for at the most two months and will then pay if off in full, heres the point, do they add the interest owed on this further loan to my monthy mortgage payment, do they set up a new payment just for this loan or does the interest roll over until the loan is repaid. /hope someone out there has used theres and will know the answers

TotallyBroke

I pay a seperate amounts for my Woolwich mortgage reserve and the main mortgage account. The interest I pay on the reserve is a lot higher than the main mortgage interest rate.

Hope that helps

getmore4less

Unless you have an offset the interest on the reserve will be at a different rate to the cuurent mortgage, this will be in the T&C, on mine it would have been SVR but we are offset so it is at the tracker rate.


This is one of the downsides of overpaying to build up a reserve it costs more to get it back, but for a couple of months that will not be too bad.

Being offset I have no idea how the payment work but I do think it is in the T&C's for the mortgage if you look.

If you are offset then nothing happens it is just one of the offset pots.

jimll_fix_it

Non-Offset reserves are charged at the banks SVR currently 4.99%(variable) The interest is charged onto the reserve current account. You should have had a cheque book card etc for your mortgage current account AKA Reserve facility when the mortgage completed. You can walk into your branch with these and withdraw the money. You can pay it back at anytime without being charged any ERCs.

There is a slight variance with Offset reserves as they are charged at the same rate of interest as the mortgage account and the interest is charged to the mortgage account and not the reserve account.