Woolwich Openplan chopping 50k off my reserve!!

Mark300zx

Received a letter saying they are knocking 50k off my reserve funds in my Openplan/Offset Mortgage, I can apply to keep it but have to go through a credit check!!!

They deadline for this automated process is the end of June but what is stopping me from taking out the reserve and placing it in a savings account beforehand, which would be marginally beneficial, how could they stop this or what could be their reprisal?

Thrugelmir

How do you transfer the money out of the reserve without them knowing? :think:

exbanker

I just posted in another thread on the same subject.
There is nothing to stop you taking the money out and putting it on deposit, which depending on your mortgage interest rate may be broadly cost neutral anyway.
I have an Offset mortgage. The overdraft/Reserve account is sometimes up close to the limit and sometimes not.
I can arrange things so that on the date they propose to implement a reduced limit, my balance will already be over it. But what then happens when in the normal course of events, the balance falls below the limit they have proposed? Will that mean that the next time I make a payment that takes the balance over the limit they are seeking that payment will fail?

getmore4less

Can't see any problem just moving the reserve OD into a savings account offsetting.

Interest neutral
then don't pay back anything into the reserve account

Mark300zx

OK will have a ponder, my credit rating is good, if I speak to them and they check my credit they will keep the reserve as is, or would it be better just to take the funds out without pandering to their change in terms???

Thrugelmir

Mark300zx wrote: »

or would it be better just to take the funds out without pandering to their change in terms???

When do the terms change?

Mark300zx

28th June!!!

Thrugelmir

Mark300zx wrote: »

28th June!!!

I doubt they are going to give you 3 months to withdraw the available funds in the reserve without going though due process.

The 3 months most likely is the notice that they have to give contractually with regards to changes in terms and conditions. Hence the 28th June to effect the withdrawl of the facility .

Mark300zx

So you think my account has already been limited?

Mark300zx

I have checked my account and according to my statement the funds are still available!!


I have read the letter again and it says this will be happening and it appears part of their T&Cs that the reserve is to be payable on demand, so I presume by this if I do take a chunk of money out of the account they can turn around at any point and ask for it back?

Joeline

Hello all - I have also received a similar letter from Barclays to state that having reviewed my use of the reserve they are proposing a reduction equivalent by about 73% of the total reserve available (which is the size that it is due to early repayment as well as rebalancing). They are stating that this is due to their assessment of my use of the reserve, despite that fact that 3 weeks before receiving the letter I made almost full use of the entire reserve (to allow for interest payments) and will not be in a(n easy) position to pay it back before they apply the new reserve limit. My intention is to pay it back within 6-7 months, so I'm not worried about the fact that there is no repayment schedule. I have ALWAYS been on time and all mortgage payments have gone through successfully.

The wording of the letter is very interesting, in that they are using words like "we are proposing" and "if you agree to this reduction you need not do anything" and the change will take affect on a specific day (end of June).

Of course my intention is to write (not call, as they suggest) to state that I thank them for their proposal but their review of my use of the reserve is mistaken as I AM using the reserve, and that although I appreciate the offer, I do not accept the reduction in the reserve limit.

I haven't written yet as just received the letter 2 days ago. Thoughts on this welcomed. :-)