Am I making the right remortgage decision?

dimbo61

I would be very careful about the Reserve account and just build up savings in the offset account and make the normal mortgage payment each month.
You do not have to ask "Can I have money out of the Reserve account"
You just take money out of Your offset account !

mrsw

Morgage_Confused wrote: »

Strange thing occurred on the way to offsetting.
My reserve limit seems to have been transferred over aswell. So I have a reserve account aswell as my offset. Very confusing it shows a hefty negative number. I am assuming I can whip it out into my current account and the figure will approach zero as I do so and not go more negative?

getmore4less......is this what you mean about running the offset effectively as interest only. I can just grab back the capitol paid from this "reserve account" at basically the offset rate of interest.

You had a reserve with your tracker mortgage? I would check that the interest on the reserve is charged at the offset rate.

Morgage_Confused

Yes I had a reserve on the tracker mortgage but it was chargeable at SVR not the mortgage rate. Barclays are currently doing away with reserve accounts and I agreed they could reduce mine to aprox 10k as I never used it anyway.
Then I switched to an offset and was surprised to see they took over the reserve of 10k aswell. This time though the reserve is at the offset rate and not the SVR.

There is no longer a reserve account on any new Barclays mortgages though.

Morgage_Confused

I should add that I assume the reserve is at the offset rate as that what it says in the paperwork...

getmore4less

dimbo61 wrote: »

I would be very careful about the Reserve account and just build up savings in the offset account and make the normal mortgage payment each month.
You do not have to ask "Can I have money out of the Reserve account"
You just take money out of Your offset account !

Missed this so a late followup.


You don't have to ask can I have the money from the reserve account you just transfer it to another account or use the cheque book that came with it
I think there was an option for a card as well(but would have to get the paperwork out to check that)

The reserve is just an OD on an account, they can reduce the OD limit on those mortgages where they had those terms.