Mortgage resesrve with Barclays

nana2four

We have a mortgage with Barclays and only have 17 more payments on it ,which would be great if we didn't have £46,000 reserve left on the mortgage I don't know how we are going to pay it back in the time left we are currently in a dmp with stepchange has anyone else had a similar problem ,and if so what was the outcome tia

dimbo61

How old are you?
Are you working full time?
Barclays along with all the other lenders have to be seen to be Fair to borrowers so can extend your mortgage term by 1/2 or maybe 5 years if you are under pension age and working to clear debts/mortgage

nana2four

Hi dimbo61 yes I am 56 and self employed my husband is 56 self employed too we don't retire till we are 66

getmore4less

You need to do a full review of your finances.

The reserve should(was it) have been factored into the DMP as this is a secured debt that had a deadline to be cleared.

with DMP, secured £46k, outstanding mortgage can you afford to keep this house?

How much equity?

What's the current mortgage payment outstanding balance etc.

What's a realistic term needed to pay off this 65k debt and current outstanding mortgage if it is capitalized back into a single mortgage


there is another thread that covers this issue someone claiming they did not know the reserve needed to be cleared at the same time as the mortgage.

nana2four

Hi Getmore the reserve wasn't factored in the dmp ,we have £8,500 left on the mortgage plus the £46 k reserve the house I would say is worth £120k we have never had it valued .I was to have a meeting with a Barclays advisor who did say not to worry as they want to help but that nothing would be done until mortgage was finished .

getmore4less

With a mortgage and secured debt(reserve) then you need to review the DMP with this commitment as it should have been when you did the DMP.

How much are your other debts and the payment?
You probably can't afford it and should be on token payments.