woolwich openplan

jackingham30

Hi all,first time poster long time reader.

I`ve recently just moved house, and got the new mortgage with the woolwich.To cut along storey straight, i had used £15000 of my reserve on a loft conversion on the previous house and had not repaid it all back.The idear being that a would add it to the new mortgage.
Unfortunatly this did`nt happen so i had to borrow from my reserve again once the mortgage had been set up.
I asked my woolwich mortgage advisor about repaying the reserve, she said that if a paid about £150 a month, then the reserve would be paid back by the time the mortgage had run it`s term(15 years).

I`ve just looked at a statement, and i`ve paid back £400 the last two months and have had interest charges totaling £200 over the same two months.

Does this same ok?

These charges seem mighty large to me.I thought the idear of this off setting was to lower the cost of borrowing.

any advice would be much appreciated.
thanks
jack

caver

You need to remember that the reserve if it isn't a offset mortgage is calculated at the standard variable rate so the sooner you pay it off the better.