Advice from anyone in the know Ref. Woolwich Mortgage.

pfpf

hi,

i am in the fortunate position of being close to the point where i could pay off my mortgage. however its a good mortgage with 16 years left to run, its a lifetime tracker at base +0.59%.

i know it makes no sense to pay it off when savings are 3x this rate so wont be paying it off in the current climate.

my questions are about the mortgage itself.

a requirement of the mortgage was to take out a "reserve mortgage current account", this came with debit cards and a chequebook - none of which i have ever used.

this is what i currently see in online banking:






i have worked out that the overdraft is the full amount borrowed less payments made.

what i am wondering is if i did pay off the mortgage and leave just a small amount on it would any future borrowing i may make using the cards/chequebook be at the mortgage rate and would the amount available be the overdraft amount?

there is alot of reference to the "reserve" amount but as you can see this is n/a.

i have read through all the info i have but cant really see anything that explains the overdraft/reserve APR%.

i am also thinking of keeping the mortgage just in case we move over the coming years but does anyone know if i would be able to keep this mortgage on current terms?

finally, how do i actually make a large payment and how much should i leave on the mortgage? i know if i want to redeem/payoff in full i request a redemption figure from the bank. is it actually possible to pay off say everything less £1000.00 and then have my monthly payment adjusted to reflect my debt is just the 1k? and would this new payment reflect theres still 16 years to pay off the 1k ie. tiny monthly payment?

as i said in the title its only really people who have the same mortgage who may have the answers i am looking for.

i know a call the CS may get me the answers i need but i would like real life feedback too.

thank you.

SLAMMER_2

in regards to the reserve unless you are on an offset mortgage it will be charged at the svr, whichis 4.99 currently. It would have been very clear on the key facts illustration if you can find that.

pfpf

SLAMMER wrote: »

It would have been very clear on the key facts illustration if you can find that.

i had this before when asking a question about this mortgage last year. i never got a KFI, just a mortgage offer.

that now makes sense regarding the reserve but as you can see i dont have a reserve just the overdraft.

getmore4less

The mortgage current account is the same account the mortgage reserve would have been in.
The reserve you see on-line is the barclays reserve that costs £22 ever 5 days.

As has been said if you use this it will probably be at the SVR if you are not offset.

This will be in the T&C that you got when you took out the mortgage.

Also check the T&C's some mortgages had the option to convert into offset trackers for a small fee and small increase in interest rate.