Barclays / Woolwich Mortgage Current Account Reserve - Limits Called In Early?

getmore4less

Just to be clear the reductions on the mortgage reserves were done by agreement you could ask to keep them.

To see what replaced the normal reserve just look at Barclays site for details.

getmore4less

agarnett wrote: »

Well what I heard is that your relationship with your mortgage lender might change overnight. They might unilaterally call-in a significant part of your loan agreement when you least expect it.

Some lenders who might have been ok to stick with some years back might not be ok now unless you know your rights.

A bank in nanny state clothing is not a pretty sight.

Oh, and getmoreforless, you say personal reserve (that's the thingummy on current accounts - not mortgage accounts) went months ago ? Interesting. Went where? So I wonder how they work for those that have them ? Answers on a postcard, but meantime maybe this geezer down the pub can help out :rotfl:

Reserves Withdrawn 16 June

http://www.barclays.co.uk/CurrentAccounts/Changestooverdraftsandwaystoavoidfees/P1242663274269

Thrugelmir

agarnett wrote: »

You can dress it up as 'responsible lending' if you like, but retrospective 'responsible lending' of this type looks suspiciously like the lender breaking the contract to reduce their exposure.

If you read the contractual terms there'll undoubtedly be a clause to allow a change. So no grounds to contest the decision.

The FCA's total focus is on responsible lending. Mortgages, payday loans, credit cards, the list goes on. Early days so still much to be addressed. Therefore it is in the lenders interests to be one step ahead of the game.

agarnett

Thrugelmir wrote: »

If you read the contractual terms there'll undoubtedly be a clause to allow a change. So no grounds to contest the decision.

Undoubtedly? Where might you have learned that rather presumptuous assumptive, old chap?

Can you show us an example of the sort of clause that might be there allowing such a fundamental change to a loan agreement part way through a long term contract? Might it be alongside the bit that says

"Your home is at risk if you fail to keep up your mortgage payments?"

e.g.

"Your home is also at risk if you are silly enough ever to rely upon the extended loan facility we gave you with your mortgage and if you aren't ready to pay it back on demand when it suits us even though we may have told you when we sold it to you that you needn't pay it back until the end of the mortgage term."

?

The FCA's total focus is on responsible lending. Mortgages, payday loans, credit cards, the list goes on. Early days so still much to be addressed. Therefore it is in the lenders interests to be one step ahead of the game.

What game? Mortgage lending is supposed to be serious business. Customers rely heavily on mortgage agreements being adhered to throught the mortgage term exactly as sold, not as a bundle of sacrificial pawn pieces in some game played by the lender to fend off criticism from the FCA.

getmore4less

If you go to Barclays web site and put in the search box reserve you will get plenty of reading on how these are structured.

I have never heard of any reserve in use being recalled, Barclays did review and reduce the facility if you agreed.