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Where do we stand - mortgage reserve interest
neenmarie
Posts: 83 Forumite
Hi
Just a quick question. We have a mortgage reserve which is linked to our lifetime tracker mortgage with the woolwich. We have been led to believe that the interest rate on the reserve is more or less in line with the Mortgage interest rate which is currently at 0.79%. All our statements for the reserve give a monthly interest rate of 0.42%. When I questioned the bank they said that the monthly interest rate should be 4.99%, she checked and yes we are paying 4.99%. I am really angry as we were told it runs in line with the mortgage and thought we were paying interest of only 0.42%. Can we do anything about this as it clearly sayes on our statements the monthly interest is 0.42%, would they have to honour the rate on the statements and could we get some money back?
Thanks
Just a quick question. We have a mortgage reserve which is linked to our lifetime tracker mortgage with the woolwich. We have been led to believe that the interest rate on the reserve is more or less in line with the Mortgage interest rate which is currently at 0.79%. All our statements for the reserve give a monthly interest rate of 0.42%. When I questioned the bank they said that the monthly interest rate should be 4.99%, she checked and yes we are paying 4.99%. I am really angry as we were told it runs in line with the mortgage and thought we were paying interest of only 0.42%. Can we do anything about this as it clearly sayes on our statements the monthly interest is 0.42%, would they have to honour the rate on the statements and could we get some money back?
Thanks
0
Comments
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Whoever told you that it runs in line with the mortgage rate was bending the truth a little. As I understand it, the Mortgage Reserve rate is the Barclays standard variable rate - not the rate of your mortgage. It is still a fairly good deal as you are unlikely to be able to borrow money at that rate easily. If your mortgage is anything like mine, the rates will have been explained in the documents that came with the mortgage.
James.0 -
Check your T&Cs carefully I have them from 2004(ish) and they definately say at SVR.
My last annual statement Oct 2010 says on page 4 of 6
Additional borrowing drawn down on the mortgage current account reserve is charged at the Woolwich SVR except for offset.........
what does yours say?0 -
getmore4less wrote: »Check your T&Cs carefully I have them from 2004(ish) and they definately say at SVR.
My last annual statement Oct 2010 says on page 4 of 6
Additional borrowing drawn down on the mortgage current account reserve is charged at the Woolwich SVR except for offset.........
what does yours say?
Our last statement which was Oct 2010 sayes monthly interest at 0.42% as does all our other statements0
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