Woolwich reserve account

stevirobbo

Having had a Mortgage with the Woolwich for many years, we have had the benefit of having a Open plan mortgage where you can borrow from a reserve account attached to the mortgage, you get a separate card etc and bank book. Anyway a few years (as you know) The Woolwich mortgages were taken over by Barclays, I didn't want to be with Barclays but had no choice.
Barclays have just informed us over the phone that if our reserve account is not paid in full down to the last penny by the time our Mortgage is finished they can repossess our home without even telling us.

I was wondering if this is true? All I can find n this matter is with Barclays reserve accounts they have to put something in to offset like an asset when they take this out. Whereas when we took out our Mortgage with the Woolwich there was no mention of repossession at the end if it wasn't paid back before the mortgage finished.

We where under the impression that we could use this account as a fall back in difficulties and even when the mortgage was finished we could just pay payments each month.

Having now only 9 years left to pay on our mortgage I need to know if this is true and they will repossess my home if there is only pennies outstanding in my reserve account as we were never told this when it was set up so we have been misled.

Dave_the_Ginger_Cat

I had one of these - it is correct that the reserve should be repaid at mortgage maturity

It is not however the case that they can repossess without telling you. They have to go through a number of court processes before they do this.

I'd suggest making plans to repay it, or considering what borrowing may suit your needs

They may be willing to extend it, but given that the rates are typically low (mine was base + 0.74%), they are likely to want them repaid.

stevirobbo

Thanx for that So I have 9 years to pay back what I owe in the reserve account... Typical tyrant way to try and grab your property as per usual the banks swing a big surprise to deceive you

Let_Us_See

stevirobbo wrote: »

we have had the benefit of having a Open plan mortgage where you can borrow from a reserve account attached to the mortgage

As you stated the reserve fund was attached to the mortgage, so why do you expect the reserve fund facility to continue on redemption of the mortgage?

PS. No one, banks included, can repossess your property without telling you.

getmore4less

the reserve is only at the mortgage rates if offset, other mortgages it is at Barclays svr.