Mortgage Reserve Account

BazzOUFC · 20 April 2019 at 9:36PM

I am a long-time sufferer of depression, following my son’s diagnosis of Asperger’s Syndrome a few years ago. I have a DMHEF Debt and Mental Health Evidence Form (including consent form), signed by my GP, staining I have depression, I am a pathological gambling problem, I am vulnerable and have a poor memory and concentration difficulties.
I was recently informed by my bank I had a mortgage reserve account by a staff member in Barclays. I then went and gambled the 20k away during a bad and low time.
I went back to Barclays recently and they said, the reserve account may have been mis sold and logged a complaint for me.
Does anyone no what may happen, if it’s proved it was mis-sold.

Please, is there someone who can advise me on my situation?

ACG · 20 April 2019 at 10:03PM

It is part of the mortgage. It is not an add on as such, it is like the ability to make overpayments - all included.

My Mrs used to work for a casino, apparently you can have your accounts locked to prevent you from gambling when you have the urge to? I am not sure how it works in practice.

I can not see Barclays writing off £20k. They did nothing wrong, they included a facility they said they would, they did not know about your addiction or medical issues.

BazzOUFC · 21 April 2019 at 4:50PM

Thanks ACG - I'm not asking for a write off, would just like to know what they maybe liable for, for miss-selling the product!

getmore4less · 21 April 2019 at 4:59PM

When did you get the mortgage, reserves were standard with Woolwich and later barclays products.

There was a flaw with repayment mortgages where the reserve went up as the mortgage went down.

ACG · 21 April 2019 at 6:26PM

On what grounds have they miss sold it?
Why dont you tell us what you think they have done wrong.

Just to add, I have absolutely no affinity to Barclays, if anything, I actually do not like them as they are a nightmare to deal with. But so far you have told us about a medical condition and a gambling habit, neither of which by the sounds of it Barclays knew about and they included a reserve account which they said they would include in your Mortgage illustration and offer.

Have a read of section 12 in your illustration.

BazzOUFC · 21 April 2019 at 8:09PM

getmore4less Thank you - I was with the Woolwich, and yes it did grow as the mortgage went down. Its not something we wantes nor really understood.

TrickyDicky101 · 21 April 2019 at 8:13PM

Were Barclays aware of your gambling problem?

ACG · 21 April 2019 at 9:14PM

If you did not want it, you should not have used it or chosen a lender who did not offer it or asked them to reduce the facility down to £0. You oculd not remove it completely.

Have a read of section 12, it is fully explained there:

Additional borrowing available without further approval A Mortgage Current Account Reserve is a secured overdraft available through a Mortgage Current Account, and can be used to draw down additional borrowing. You will still owe any Mortgage Current Account Reserve Facility used at the end of the mortgage term. You will need to make separate arrangements to repay this.

Any additional borrowing taken through the Mortgage Current Account Reserve will increase the amount of borrowing secured on your home. This means that if you fail to repay any amount borrowed your home will be at risk of repossession.

There is more, but this explains if you use the money, it needs paying back.

getmore4less · 21 April 2019 at 10:59PM

The problem with these reserves was even if you started a zero as you paid off capital through normal payments the reserve overdraft limit started to grow effectively making the mortgages interest only if you used the reserve.
For regular repayment it was also at the higher SVR for offset the mortgage rate.

Barclays have been trying for quite a few years to wind these facilities down.

The reserve should have been implemented so it only grew with overpaying.

BazzOUFC · 22 April 2019 at 12:14PM

Thank you all - I will let you know what the bank says tomorrow

Mortgage Reserve Account

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