Woolwich Openplan chopping 50k off my reserve!!

Mark300zx

Sorry to hear we are both in the same position, I am seriously considering taking my reserve out of Barclays as I am starting an extensive refurbishment of a house I inherited and was going to use this as my contingency fund, I wonder what they will do with us???

Thrugelmir

Mark300zx wrote: »

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?

If the T&C's say on repayable on demand. Then use that is the case. By using the facility you would by default be accepting the T&C's.

Thrugelmir

Joeline wrote: »

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. :-)

Be far easier to ring them as appears to be more questions than answers given your situation.

Mark300zx

I think this could turn into a little consumer battle, originally these mortgages were sold to people on the basis you could use your savings to counter your mortgage and draw back on them when needed, now they are changing their mind!

little_princess

Hi, has anyone any further information on this, as I have just recently received this letter and am wondering how to handle it!

The reserve was never offered on a financial affordability scale as it was 'up to' 90% of your house value & as we have not changed any aspect of our mortgage nor defaulted on any payments I wouldn't have thought we should have to jump through the new mortgage affordability hoops they are now imposing on new borrowers?

minimike2

Mark300zx wrote: »

I think this could turn into a little consumer battle, originally these mortgages were sold to people on the basis you could use your savings to counter your mortgage and draw back on them when needed, now they are changing their mind!

I think you are confusing the offset savings with the reserve facility.

The reserve facility isn't your savings offsetting against the mortgage, it's a pre-agreed, in essence, secured overdraft.