Mortgage Reserve

Bismarck

Hi

Please can someone answer this:

My understanding is that a Mortgage Reserve with Barclays is a secured overdraft, secured against the equity in your home.

Is it repayable on demand like a regular overdraft or does it only become an immediate issue when you come to remortgage - as long as you pay the interest on the loan that is...

My point is that it seems ideal for new windows and general house improvements without doing a remortgage but if it's technically repayable on demand, what are you supposed to do if that happens and the money's gone on plastic and glass on your wall?

any help from wise heads welcome.

MortgagesInc

I don't think the Reserve is reviewed at all, so it's not likely to be withdrawn or 'called-in" at all. Overdrafts are reviewed regularly, and if the bank doesn't like what they see then they may seek repayment.

The Reserve facility is really set up with this kind of expenditure in mind, so I would be more than comfortable using it for this purpose.

The only thing to bear in mind is that it's charged at Standard Variable Rate, unless you have an Offset in which case it is at pay rate.

Hope this helps

Bismarck

thanks for your thoughts

"Overdrafts are reviewed regularly, and if the bank doesn't like what they see then they may seek repayment."

I'm trying to avoid going overdrawn but was wondering what makes banks jittery about ODs generally.

Also, I had a look into the terms and conditions and the phrase "repayable on demand" is in there which did make me think about the me giving the bank the double glazing if they wanted the money back!