Barclays/Woolwich - Mortgage Reserve being Withdrawn

exbanker

To conclude my experience.
My request to retain the facility was initially refused after I had answered some affordability questions. I asked for the decision to be reviewed.
Four weeks later (I was told it would be two weeks), I have had a call to advise that the underwriters have authorised the facility to remain. Good news - they are going to uphold their side of the contract.
I suspect the reason that it went to underwriting is because I have Buy to Let mortgages as well.
So, all sorted. Until the next review!

vacheron

I received a letter "D1" from them yesterday telling me that after a review of how I use my reserve they are going to reduce it from £26,650 to £25,000

As my mortgage payment comes out of it each month it is currently sitting at £25,450 so the reduction would immediately make me overdrawn.

So

• I am actively using my overdraft
• The reduction is just enough to make me overdrawn.
• The reduction is only 6%. Is this really going to make a difference to my ability to manage my commitments?
• They have stated that my new reserve will continue to include the rebalancing feature and will increase each time my mortgage reduces by £2000 which means that in 2-3 months time it will be right back where it is now! :doh:

vacheron

Just called them on the number provided in their letter (0333 202 7588) and a man picked up the phone and just answered with "Hello".

When I explained that I must have the wrong number and read it back to him he said. "Yes, that's my number. Are you calling about Barclays as I've had dozens of calls from people. In the end, he'd called Barclays himself and it seems they've put the wrong number on the letter!

I'll add another tally to my "Barclays Hopeless-o-meter"

Mark300zx

FYI I rang the helpline, was asked fairly simple questions and they retained my reserve, it's a horrible position to be in and hope you all get the best outcome for you!

DVDKEV

I received the same letter last month. I rang to retain the reserve limit and whilst they agreed to do so, they stipulated that though my mortgage remains at BOE base rate plus 0.95%, any amount drawn from the reserve accrues interest at their variable rate of something like 4.75%. I am surprised at this and having read the posts here, it suggests that the reserve interest rate in other peoples cases mirrors the mortgage interest rate else it would seem daft to draw against the reserve to pay your monthly mortgage repayments.

Can anyone confirm whether they have a BOE base rate plus 0.95% mortgage (currently 1.2%) and their reserve is set at the same rate? I originally took out the mortgage as a 10 year fix in 2006 with Woolwich having read about it on here. I took it thinking it was an offset mortgage but when I spoke to them 7 years into it they said it wasn't an offset so any savings I had with the savings account that they provided when the mortgage was set up weren't having any effect on my repayments nor reducing interest on the mortgage which upset me at the time but I could find no paperwork to take it further. Coming off last year onto an interest rate of 1.2% was great but I am surprised to find that any reserve isn't at the same rate.

Mark300zx

Would like to find out about this as well, I thought mine was charged a minimal amount of interest now I am somewhat concerned!

getmore4less

Only offset benefit from the rate being the mortgage rate all other mortgages it has always been SVR