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How is Barclays Mortgage Reserve interest calculated?
busta100
Posts: 2 Newbie
How is Barclays Mortgage Reserve interest calculated?
I understand the interest charged is at the Standard Variable Rate but is this calculated monthly/yearly on the balance?
If say you took £5000 out of the account what would the interest be each month?
I understand the interest charged is at the Standard Variable Rate but is this calculated monthly/yearly on the balance?
If say you took £5000 out of the account what would the interest be each month?
0
Comments
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So say my SVR was 5% and i borrowed £5000,would that 5% be added every month or calculated over the year and split each month?0
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Interest is calculated daily and added monthly.
rate depends on the mortgage type, SVR on most unless it is an offset mortgage then it is at the mortgage rate.
Would have to check where the interest is added it should be in the documents you got with the mortgage.0 -
getmore4less wrote: »Interest is calculated daily and added monthly.
rate depends on the mortgage type, SVR on most unless it is an offset mortgage then it is at the mortgage rate.
Would have to check where the interest is added it should be in the documents you got with the mortgage.
If this account is in credit, does it pay any interest at all? I have been told that it is like a current account but attached to the mortgage. I am wondering whether it is worth paying any money into the account in advance of spending it on the house.0 -
The reserve rate is different (higher) than the SVR.It will be on you most recent statement.If you borrowed say £5k then it would work like a small mortgage at the reserve interest rate over the mortgage term.You can pay this back more quickly however.WhHen the mortagae was set up you would have had a reserve amount available along with a cheque book and card to borrow from the reserve.If you paid into the reserve it does not necessarily work like an 'offset' mortgage as thats a different product.It sounds like you have an open plan mortgage that used to be via the old Woolwich brand.I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as advice.0
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If this account is in credit, does it pay any interest at all? I have been told that it is like a current account but attached to the mortgage. I am wondering whether it is worth paying any money into the account in advance of spending it on the house.
Mine is part of an offset so I don't know for regular accounts.
The rate is not on our statements.
can't find it on-line either
My guess is so close to zero you might as well keep your money elsewhere till needed.0
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