Barclays min loan size and SVR

engagedandopen

We have two mortgages with Barclays, one of which is a Lifetime Tracker +0.19% and the other is usually a more expensive tracker for 2 years at a time.

Am I right in thinking that if you're within the minimum period of a remortgage product, e.g. 2 years, and/or have less than £5,000 left on your mortgage, you would have to stay on Barclays' SVR of 6-8% or whatever it is at the time, rather than being able to remortgage onto another tracker or fixed-rate product?

Assuming this is correct, apart from saving (or investing) to have £5,000 ready just to pay it off at that time, is there any benefit to building up the Overpayments account to £5,000 - would the SVR interest then be neutralised to 0% due to the Overpayment balance matching or exceeding the mortgage when interest is calculated?

Thank you to anyone who can explain how it works clearly - it's not for want of looking on their website and documents!

kingstreet

Do you have two mortgages (that's two loans on separate security properties) or two sub-accounts for the same mortgage on the same security property?

engagedandopen

It's the latter, kingstreet.  Thanks for engaging with my enquiry.

kingstreet

I'm not sure if the £5k min is per sub account or per mortgage as a whole but if you are in ERC-free trackers you could change products across the whole mortgage to beat the minimum. Overpayments/offsetting etc I don't know the answer.

engagedandopen

I'd be surprised if Barclays let us combine the parts to keep it above £5k in total, kingstreet, but thank you for engaging with the question.

kingstreet

I wasn't suggesting you try to combine them. Merely to establish if the minimum is satisfied by the whole mortgage amount, rather than an isolated sub-account.