Woolwich Mortgage Reserve

Longbridge

Hi...Does anybody have any advice on the above service?

I was thinking of borrowing about £12,000 and was wondering if this would be a good way to borrow the money.

Just wondered if anybody has any recommendations....

Many Thanks!

debtbuster2K5

Hi,
What do you intend to borrow the money for?

As the reserve is generally repaid over the term of your mortgage it makes it a very expensive way of borrowing money. Although it obviously looks cheap monthly as you are paying it over many years. The demoralising thing for me was paying £140 per month in repayments and seeing £90+ disappear in interest charges.

My advice? Dont do it. It started me on the road to the debts I am working hard to clear today.

hth

DB2K5

Lynn1303

The woolwich mortgage reserve account lets you borrow up to an agreed amount over whatever time you like, eg we got all our new windows £8k over 5years at the rate of our fixed rate which was 5.1%. This is only suppost to be for home improvements I think but it is not over the same length as your mortgage.

Bennifred

We found that the trouble with this account is that you end up using more than you'd planned (they always seem to give you the opportunity to have more and it's a bit too easy to dip into, a bit like an overdraft) and although you are allowed to pay it off as soon as you like, you HAVE to pay it off when you redeem your mortgage, so you had better have the means to repay it within the term of your mortgage......