Barclays Remortgage

magenta1977

Hi There,

I have a mortgage with Barlclays that includes a reserve.

I want to remortgage, can I add the reserve amount to the mortgage and remortgage for the total amount? Or are they treated as 2 seperate loans?

I know it may seem like a stupid question, but I made the mistake of asking a few people and they gave me different answers and now my head is wrecked!

Thanks for any advice.

getmore4less

If you want to take the debt to a new lender any used reserve will have to go with it as it will need paying back, as it is a secured overdraft they will lose their security.

if staying with Barclays you will need to talk to them.

Barclays are actively trying to reduce the exposure to reserves so may want you to capitalise any used reserve back into the new product.


Unless you have an offset the reserve is at the SVR typically not as good as many Barclays follow on tracker rates.

magenta1977

I will be staying with barclays, just wanted some advice before I approach them.

So you think they will be ok with remortgaging the Total (Mortgage plus reserve)?

Need to get rid of the reserve as it is too handy!

getmore4less

no idea, you will have to ask,
if it is just a product change then maybe not allow the merger/capitalization, they do however want to reduce them.

a full refinance will require full affordability checks etc.

you could ask them to reduce the reserve to the current level of borrowing and as you pay it off keep reducing it.


What rate are you on now?

magenta1977

Mortgage 0.84%, think the reserve is the same.

Might do as you requested as ask the reserve limit to be reduced as I pay it off and just start paying off as much as I can to get rid of it.

Still have 17 yrs left on Mortgage, but the reserve is too handy and I don't seem to be getting anywhere...with reducing my overall debt!

Thrugelmir

magenta1977 wrote: »

Might do as you requested as ask the reserve limit to be reduced as I pay it off and just start paying off as much as I can to get rid of it.

With the rate you are currently paying. Maybe the best option if it provides the necessary discipline and constraint to control your spending. The months pass by very quickly. You'll be at the end of the term before you realise it.

getmore4less

magenta1977 wrote: »

Mortgage 0.84%, think the reserve is the same.

Might do as you requested as ask the reserve limit to be reduced as I pay it off and just start paying off as much as I can to get rid of it.

Still have 17 yrs left on Mortgage, but the reserve is too handy and I don't seem to be getting anywhere...with reducing my overall debt!

if you are on an offset mortgage the rate will be the same if not then it will be on 3.74% check because the way it works on non offset you will be rolling up interest unless you are paying extra


unless they have changed yours every now and then your reserve will go up to reflect the capital being paid off.

It may be worth offering to put the reserve back onto the mortgage and limit it to a very low number.

you do not want to be changing away from the rate you have that will be unbeatable .

getmore4less

have you been getting letters about your reserve?

how big is the mortgage?
How big is the reserve?
How much reserve have you used?

magenta1977

I am not on an offset mortgage, but a repayment. So as getmore4less states the interest is higher.

My Mortgage balance is $60k
My Reserve balance is $20k...but the limit keeps increasing

I got a letter saying that I am reaching my reserve limit and should contact them to talk about how I plan to pay it off.

getmore4less

You have been borrowing back the money you have been paying off your mortgage. ( which is similar to interest only )

Solution stop spending and pay it back.

They may offer to recapitalize the reserve but set it lower/zero.

minimike2

You will end up with a sub account to the mortgage - Essentially you will be applying for extra borrowing, so will have two "parts" to the mortgage. It will be on a new product. The current main mortgage will be unaffected.

You will lose the reserve facility by doing this including removal of the rebalancing facility which you are currently experiencing the effect of.