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The only time they can do anything is when the mortgage term ends as it is a requirement that the reserve is paid off. If affordable(and not age limited) I suspect they may allow the reserve to be capitalised into an extension of term/new borrowing if needed, or people can try a remortgage elsewhere.
As long as you keep paying and are happy you can pay off the debt then I would not worry. We have kept ours going just in case and allowed them to reduce the reserve a couple of times as we would not have borrowed that much anyway as we had a repayment schedule planthat was affordable if we needed any money
I have written about these mortgage a few times, They are good and the rates were great if you got the timing right. They did have a few problem as not everyone was understanding how they worked and the non offset borrowers were drawing down the reserve at a high interest rate and unless you read your paperwork and statements it was not that obvious. You could operate these mortgages as if they were interest only which for many was not a good idea as they did not have alternatives in place for the capital resulting in big debt near the end. They have been trying to unwind the excessive debt with reminders and reserve adjustments. we still get them but now get the end of mortgage reminders as well under 2 years to go. I am thinking of just tidying up the mortgage accounts as we won't be borrowing on it again.
