What’s a mortgage reserve?

A mortgage reserve is a secured overdraft on a mortgage current account, where you borrow against the equity in your home.

We don’t offer them for new mortgage applications anymore, but you might have one if you’ve already got a mortgage current account.

You’ll need to repay the reserve by the end of your mortgage term, as it’s taken out against your property.

How we charge interest on reserves

For offset mortgages, we charge interest at the same rate as your main mortgage account.

If your mortgage isn’t offset, we charge interest at the Bank of England Base Rate plus 3.49%.

We’ll charge you interest if you use money from your reserve account and don’t have enough credit balance to offset against it. We won’t organise any repayments for the money you borrow from your reserve account, so you’ll need to make sure you’ve paid it back in full by the end of your mortgage term. You can find more details on our website.

Offset mortgages

Your home may be repossessed if you do not keep up repayments on your mortgage.