barclays mortgage current account- what is it?!

clippy_girl

Hi all,
Have applied for and finally had my offer for a woolwich mortgage. It states on the offer that I must take out a mortgage current account with reserve facility. They have opened this account and sent me a letter say it's open. However I have no idea what is for or if there is any benefit to it? Google shows that it allows you to borrow money from your mortgage but this is closed to new customers. So not really sure why they have opened it?!
I have got a switch and save fixed 5 year repayment mortgage.
Anyone know anything about this account please?
Thanks

Morgage_Confused

yes...just dont use it. I never have.
Basically you can borrow back the capital you are paying off your mortgage by taking it from this account. However you will be charged interest at the barclays svr not at your mortgage rate.

deejaybee

I too wondered what the current account was all about ( recently started paying new Woolwich mortgage )

Thanks for clearing that up !

mrginge

I've bought two cars with mine so far. All at an interest rate of 1.45%