Barclays offset mortgage account query

zolablue25

Wasn't sure whether to put this isn the "Mortgages and Endowment" section but I think its better here.

I have an offset mortgage account with Barclays and have had for 16 years. Since November my account has not been sweeping funds from the "current account" to the "target reserve" account. I do not know whether it transfers funds the other way or not. Barclays have confirmed that there is an issue with Mortgage accounts not sweeping.

Anyway, as mentioned above, I have had this account for 16 years and I have yet to find out what the point of the target reserve is. It appears that the total in all of your "pots", including the current account, go towards offsetting the mortgage. So what is the point of the target reserve as opposed to leaving all of your funds in the current account?

mgdavid

I had a Barclays Offset mortgage from early 90s until I paid it off a few years ago. I don't remember details about the 'target reserve' but think it's a limit you can go to if you need to borrow more money on the mortgage account.
I certainly never did any 'sweeping' between accounts, just nominated which accounts I wanted to use to offset against the mortgage account. At one point I had three.

zolablue25

mgdavid wrote: »

I had a Barclays Offset mortgage from early 90s until I paid it off a few years ago. I don't remember details about the 'target reserve' but think it's a limit you can go to if you need to borrow more money on the mortgage account.
I certainly never did any 'sweeping' between accounts, just nominated which accounts I wanted to use to offset against the mortgage account. At one point I had three.

No that's a different reserve. Up until November the account "swept" any funds out of the current account into the Target Reserve above a set amount. The set amount could be anything but I chose £200. So, when my cirrent account had more than £200 in it the extra was swept into the Target Reserve and when my current account paid bills then funds were automatically transferred back from the Target Reserve. As far as I understand it (and certainly from experience) all pots, including the current account, offset the mortgage, so I never really understood the need for the Target Reserve. So I'm just wondering whether I'm missing something? I was hoping taht there might be a Barclays rep monitoring these pages that could enlighten me as to what the Target Reserve is actually for.

I stress again, this is not the Reserve that lets you borrow extra at your standard mortgage rate. I have that one as well.