Barclays Mortgage Reserve being withdrawn, advice appreciated.

cateuk

Hi, I hope this is the right forum, apolgies if not.

I took out a mortgage with Woolwich, now Barclays, years ago and was provided with a reserve account. I didn't use it until last year and due to financial issues have built up quite a sum.

I applied for a remortgage and was told to apply for an additional sum loan. I was turned down and so was advised by Barclays to use the Reserve. She told me that they were withdrawing it but as I had used it and was going to use it more, they wouldn't remove or reduce mine. They were just removing unused ones.

On that advice I made the decision to use it. I can't complain, its helped enormously. My financial issue is short term so the intention was to start paying it back next year.

However, I just received a letter stating they are cutting my limit to below my outstanding balance! I am now faced with having to find a few thousand pounds in a couple of months which is impossible.

Can anyone advise on ways of handling this situation? Shifting the debt somewhere else? I'm at a loss. Currently waiting for an appointment which is ages away.

I work full time but my partner is self employed and not doing to well hence the situation.

getmore4less

what exactly does the letter say, previous ones often have a tell us if you want to keep the reserve in them.