Woolwich Mortgage Current Account

MrPoor

I have been given a mortgage current account from Barclays following a mortgage offer from Woolwich. I never asked for it but they say I get one any way. However, I am not obligated to use it.

I also bank with Barclays and have a current account with them with an overdraft limit of £4000 (Im not overdrawn currently but have been during my student days).

Can someone please explain the difference between my Barclays current account and Barclays mortgage current account that has been forced upon me? Will one affect the other, for example could the new mortgage account affect my agreed overdraft limit since I assume I would also get an overdraft for the new account (which I will never use).

MrPoor

anyone? or have i asked a stupid question and everyone has decided to ignore it

joolley

Nothing much. As you pay up your mortgage, you will notice a gradually increasing "reserve" building up on your MCA. This is merely an overdraft facility based on how much you have paid off your mortgage. This can be borrowed back at 4.99%. Unless the mortgage is an offset, then the rate will be the same as your offset. But if it were an offset, then you would have known about the reserve and MCA.

VIGILANT22

[QUOTE=MrPoor [/QUOTE]


Suggest you read your T & C's, this should bring you up to speed.........

MrPoor

joolley wrote: »

Nothing much. As you pay up your mortgage, you will notice a gradually increasing "reserve" building up on your MCA. This is merely an overdraft facility based on how much you have paid off your mortgage. This can be borrowed back at 4.99%. Unless the mortgage is an offset, then the rate will be the same as your offset. But if it were an offset, then you would have known about the reserve and MCA.

so the overdraft facility on the MCA will have no effect on the overdraft that I have on my normal Barclays current account?

joolley

MrPoor wrote: »

so the overdraft facility on the MCA will have no effect on the overdraft that I have on my normal Barclays current account?

EDIT: You're correct! Well that's what's happened for me, but I have an offset which had a reserve that increased with overpayments. I also have a tracker which I suddenly noticed shortly after getting it that it had a reserve increasing in keeping with my overpayments. I'd been told by my mortgage advisor that I wouldn't get a reserve as this was a second mortgage. go figure.

EDIT: Yes, I got 2 MCAs, one with each mortgage. I recently remortgaged, and got another!

Afro_Thunder

joolley wrote: »

Well that's what's happened for me, but I have an offset which had a reserve that increased with overpayments. I also have a tracker which I suddenly noticed shortly after getting it that it had a reserve increasing in keeping with my overpayments. I'd been told by my mortgage advisor that I wouldn't get a reserve as this was a second mortgage. go figure.

EDIT: Yes, I got 2 MCAs, one with each mortgage. I recently remortgaged, and got another!

Sorry I may have misunderstood but are you saying that your mortgage current account affected the overdraft limit on your regular current account with Barclays? That should not have happened if that was the case, two seperate things.

joolley

Afro_Thunder wrote: »

Sorry I may have misunderstood but are you saying that your mortgage current account affected the overdraft limit on your regular current account with Barclays? That should not have happened if that was the case, two seperate things.

You have misunderstood my post.

I only have MCAs as I did not bank with Woolwich/Barclays before the mortgages. Each has a reserve, despite the fact that I was told that only one would. One started off with a 40K reserve ( I think, don't remember) and the other, being second mortgage started off with none. The second one's reserve increased in line with overpayments, that is from £0. The first was always there but increased anyway.

I do not imagine that the reserve will have anything to do with the normal overdraft. They are 2 separate things.

Afro_Thunder

joolley wrote: »

You have misunderstood my post.

I only have MCAs as I did not bank with Woolwich/Barclays before the mortgages. Each has a reserve, despite the fact that I was told that only one would. One started off with a 40K reserve ( I think, don't remember) and the other, being second mortgage started off with none. The second one's reserve increased in line with overpayments, that is from £0. The first was always there but increased anyway.

I do not imagine that the reserve will have nowt to do with the normal overdraft. They are 2 separate things.

Thanks for the clarification :beer: