What is the difference between a Mortgage Reserve and a Barclays Savings Reserve?
A Mortgage Reserve was a secured overdraft facility linked to a Barclays Mortgage Current Account, which allowed clients with a Woolwich Openplan Flexible Mortgage (OPFM) to borrow against the equity in their home. We no longer offer a reserve facility to new mortgage applications, be they Offset or Non-Offset, although there are a number of existing customers who have a reserve facility on their mortgage account.
For Openplan Flexible mortgages with a pre-existing mortgage reserve, interest is charged on the drawn reserve balance at Bank of England Base Rate + 4.49%, except for Offset mortgages, where interest is charged at the Offset mortgage rate and charged to the main mortgage account (for interest calculation purposes).
A Barclays Savings Reserve is a savings account that can be set up as part of a Money Manager arrangement. Surplus funds can be swept into it from your current account either weekly or monthly and it also tops up your current account if the balance falls below a limit specified by you, subject to sufficient funds being available in the Savings Reserve account.