Woolwich Openplan offset tracker Mortgage Interest Calculation and offset documents

wewantsweet

I am just wondering if there is anyone who has or had an offset mortgage tracker mortgage with the Woolwich ( then absorbed by Barclays ) which was taken out around 2006 -2009. If so does anyone have any guide/booklet or similar document that they were provided with please that explains how the bank calculate the offset which I have recently discovered is not how most any organisations do it or how I had understood to. Barclays are now quoting an offset guide and whilst they have sent me one that was produced in recent years and now added their calculation method to more recent t&cs etc I can find not mention of it in my mortgage documentation. Barclays claim they don't have a copy of the original document they are referring to. Thanks all 

MWT

I did have an offset tracker mortgage with Woolwich and subsequently Barclays, but it ended in 2018 and I do not have any documentation remaining.

What are you finding unusual about their method of calculating the offset?

I made a lot of use of both the offset and the reserve account over the years and never noticed anything strange...

wewantsweet

Thank you - I have discovered that instead of simply calculating interest daily on amount owed - amount offset ( assuming as in my case you using offset to reduce payment and not term length) - what they actually do is calculat the notional amount of amount saved by the offset and deduct this the following month which means if/when rates change it seems to mean you pay more interest.

MWT

sirkfcukwit said:

Thank you - I have discovered that instead of simply calculating interest daily on amount owed - amount offset ( assuming as in my case you using offset to reduce payment and not term length) - what they actually do is calculat the notional amount of amount saved by the offset and deduct this the following month which means if/when rates change it seems to mean you pay more interest.

That is the method used on my offset mortgage, and mine started before yours so I would expect the method was the same for you from the start.

I never regarded that as a problem though, rates can go up or down so if there was any small impact it could go either way...

wewantsweet

Yes I only just noticed it. It has been confirmed it was like that from the start but it's not in any offer / terms I have ( interestingly it is now in the more recent t&cs). I am still trying to work out the material difference to see if it's worth worrying about and the quest for booklets etc was to see if I have missed something in product info although I don't recall being given anything and generally keep stuff like that. Thanks again. Hopefully someone else may respond too