The Mortgage Reserve Account is an additional drawdown facility available to clients who meet our lending criteria.
Your clients may apply for additional funds to use for any purpose, such as home improvements, holidays, car purchase, business or education needs.
Subject to approval, we will arrange a pre-agreed limit and your client will have the freedom to deposit and withdraw funds as and when they wish. These will be made by electronic funds transfer via their existing personal current account using our simple telephone procedure.
| | Features |
| Eligibility |
- Minimum facility of £5,000
- Maximum facility of 30% of the overall borrowing
- Minimum term of 5 years
- Maximum term of 40 years or expected retirement age, whichever is earlier
- Must be repaid in full over the term of the main mortgage
- Mortgage Reserve Account balances are not included in offset arrangements
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| Features |
- Available where the loan does not exceed £1 million or 75% loan to value
- Subject to overall product LTV
- No arrangement fee
- Pre-agreed limit with your client
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| Repayment programme |
- No repayment programme is required until the limit is reached
- Clients should be aware that interest will continue to be charged on the outstanding balance on a monthly basis at our standard variable rate
- Clients can choose to make regular payments at any time
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| Withdrawals/deposits |
- Regular payments can be made at any time
- Transfers to and from the Mortgage Reserve Account will be made by electronic funds transfer to/from a designated personal bank or building society account
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| Payment holiday |
- Mortgage payment holiday and reduced payments are available (subject to application)
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