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offset mortgage reserve

hi everyone :)
am sure this question has been asked before-I have tried finding a answer on the boards but have given up!
I have an offset mortgage with Woolowich-rate is approx. 1.25% and I have a reserve of £31,000 which Im not using.
Can I withdraw some of this and put it in a savings account paying higher interest?therefore making a bit of extra money to eventually pay back into the mortgage-if I put it in an easy access savings account then I can put it back in if they decide to reduce my reserve.
Is my thinking right on this?or am I just being optimstic!!!!
I am also a non tax payer if that helps
any advice would be greatly appreciated ;)

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Barclays/Woolwich T&C(do check yours) should say the any reserve is at the mortgage rate for offset facilities.

    Check your monthly statement that the mortgage current account is in the offset pool that should also help confirm it.

    Open the barclays monthly savings account for some of it on-line so easy
    anywhere that pay more after tax will work.
  • thanks for that-I know that the reserve rate is defo the same as the mortgage rate.am of to look for savings account!!:j
    thanks again!
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