Barclays Mortgage.

[daisy]

I've gone and done it again, I'm in a financial mess and digging frantically :-(
My mortgage is with Barclays, there is also a loan and I'm overdrawn by £2800, so please may I have some advice.
If I have my wages paid into a different account and transfer the direct debits for the mortgage and car loan, but default on the overdraft, what can they do and what are they likely to do?
Thank you :-)

[cymruambyth]

Re: Barclays Mortgage.

Hi, if you open an account at an unrelated bank they won't be able to touch it. They will stamp their feet and huff'n puff. The priority is to have your mortgage paid, so make arrangements ASAP.

[daisy]

Re: Barclays Mortgage.

Thank you Cymruambyth for your reply.
I opened an account at a different bank as soon as I heard about Barclays new daily overdraft charges. I'm going to wait and see just what impact it actually has, but sadly I'm already struggling.
My concern is that my mortgage will be affected, as it's with Barclays, but I will arrange for payment by direct debit from the other account if I am unable to maintain the overdraft, just concerned that they can call in the mortgage.

[Enforcer]

Re: Barclays Mortgage.

If you continue to make your mortgage payments, even if it is from another account, they cannot call it in. Deal with the other problems as a separate issue. Your mortgage has to have priority.

[PlanB]

Re: Barclays Mortgage.

My mortgage is with Barclays, there is also a loan and I'm overdrawn by £2800 . . . .

. . . . If I have my wages paid into a different account and transfer the direct debits for the mortgage and car loan, but default on the overdraft, what can they do and what are they likely to do?

I'll take a proper look at this on Monday but my first question has to be is the overdraft a Reserve Account as identified in another of your threads? Because if it is a Reserve Account it will be secured on your property as part and parcel of your mortgage http://forums.all-about-debt.co.uk/s...l=1#post228085

So to answer your question "what can they do" the answer has to be repossess your home. But I'm sure we can prevent that once we get a bit more information. I'll make time to read all your threads after the weekend so as to get the bigger picture

Is your mortgage with Barclays (as you say) or with the Woolwich (more likely)?

[daisy]

Re: Barclays Mortgage.

Hi Plan B, yes part of it is, although they are changing the name of the reserve, however, the reserve is part of the current account and was in place prior to ING selling their mortgage business to Barclays, so there is certainly no contract agreeing to the reserve being secured on the mortgage?
The mortgage was originally with ING, they sold the mortgages to Barclays Direct and that will soon become Barclays.
Thank you Enforcer for your advice.

[PlanB]

Re: Barclays Mortgage.

Okay, this is complicated.

From what you say you had an ING mortgage which was sold to Barclays Bank (on 20th February 2013). Your OD and loan were already established with Barclays prior to that date which should mean the products were/are not linked.

According to the ING website the Right to Off-Set Barclays' products and ING's products came into force three months after the merger (i.e. 20th May 2013) which probably means this is now an issue.

I think the most important thing to discover is whether any of these products (OD or loan) can be seen as secured by Barclays who already have security on your property by way of your mortgage. There is such a thing as an "all monies charge" but usually mortgages are specific to the amount borrowed.

I suppose the worst case scenario will be that Barclays could obtain a CCJ against you and then a Charging Order if the debt is more than £1k (which it is).

Is this a joint mortgage on a jointly owned property? If so does your partner/wife also have an account with Barclays?

This is what the ING website says about the merger/takeover and the ROSO:




This information will only be relevant to you if, immediately before the transfer, you had accounts with Barclays.


A set-off right is the right of a bank, in certain circumstances, to use money you have deposited with it (such as in a current or savings account) against a debt you also have with it (such as a loan, mortgage, overdraft or credit card) that becomes repayable. For example if a set-off right is included in your terms and conditions and you currently have both an ING Direct UK savings account and mortgage, if you fall behind with your mortgage payments, money in your savings account could be used to pay the missed payments on your mortgage.


If prior to the transfer you had accounts with both ING Direct UK and Barclays, the two banks could not set off amounts you owed between those accounts and that will not change for a period after the transfer. During this period, Barclays will not be able to:

• If you have a savings account with ING Direct UK (now Barclays Direct) and a mortgage or loan with Barclays, use money deposited in such a savings account transferred from ING Direct UK to repay or reduce money owing on any such existing mortgages or loans with Barclays; or
• if you have a current or savings account with Barclays and a mortgage with ING Direct UK (now Barclays Direct), use money held in such an existing account with Barclays to repay or reduce money owing on a mortgage account transferred from ING Direct UK.

The period of time referred to above will be three months from the transfer date. However, if your money is held in a fixed-term account or in an account which is subject to a promotional rate, provided that the balance is maintained for a certain period, it will be three months from the end of that fixed term or promotional period.
After the period ends, Barclays will be able to exercise rights of set-off between all accounts you hold with Barclays, including those transferred from ING Direct UK (now Barclays Direct).


The restriction on Barclays exercising its increased rights of set-off will not apply to any new accounts opened with Barclays after the transfer date.

[daisy]

Re: Barclays Mortgage.

That is my worst nightmare! It's a joint mortgage with my husband, but my barclays current account.
i would like to say thank you for the link, but I'm now feeling quite queasy :-(

[PlanB]

Re: Barclays Mortgage.

That is my worst nightmare! It's a joint mortgage, but my barclays current account.
i would like to say thank you for the link, but I'm now feeling quite queasy :-(

No need to feel queasy. Knowledge is power. You need to know where you stand so you can prevent the worst case scenario.

Does your husband also bank with Barclays? If so are his wages paid into Barclays (if he is in work)?

Is your mortgage all paid up to date or do you have any arrears?

[daisy]

Re: Barclays Mortgage.

My husband doesn't bank with Barclays, but his wages are paid into my account. There are not and have not been any arrears on the mortgage.

[PlanB]

Re: Barclays Mortgage.

My husband doesn't bank with Barclays, but his wages are paid into my account. There are not and have not been any arrears on the mortgage.

Good. No arrears on the mortgage means they cannot repossess you unless you breach the terms of the contract in another way which is very rare. So you can relax on that score.

Is there a reason why your husband's wages need to be paid into your Barclays account when he has an account with another bank?

More importantly what are you trying to achieve? If you want to avoid high interest charges on your OD and/or avoid ROSO then you should both bank elsewhere and leave the mortgage where it is paid by DD from one or other of those accounts. Do you have a joint account elsewhere to do that?

The reason I ask is if it looks like only one of you is paying the mortgage then that could suggest the other is not making any financial contribution. If further down the line you ever find yourself in a divorce situation (and God forbid that should happen) the issue of 'who contributed' to the purchase of the matrimonial home could become an issue.

Banking elsewhere won't stop those OD charges from accruing. In fact they will only increase if there is no longer wages being credited to the account which would reduce the balance for some days of the month. As long as an account is performing (i.e. money in/money out) the bank shouldn't hassle you if you are within the OD limit. If money ceases to come in this may flag up and the bank could call in the OD. I'm not saying they will, I'm simply saying you need to look at all the options before making your decision.

I assume the OD has not been defaulted?

Incidentally I'm not sure why you are worried about ROSO because the bank can only take money from an account with a positive balance and none of yours have a positive balance do they.

[daisy]

Re: Barclays Mortgage.

Good morning Plan B, thank you so much for giving your time and advice so freely.
We both work and apart from when our children were young, I have always worked, we have been happily married coming up for over thirty years, so hopefully we should be able to survive most storms.
The joint account has only just been opened, as the money left to live on after the bills have all been paid has become very tight and it will only take one major bill for a problem to hit hard, so it is a safeguard that we can use should we need to.
Both salaries are paid into my account due to prior money problems and of course it has kept barclays sweet. I am quite angry with myself for overspending yet again and being back to losing sleep over money, but the negativity is not helping, so I'm determined to regain some control. If that means keeping tight control of the outgoings and managing to keep up repayments on everything, then that would be great, however, should that not be possible, then I need a plan that will safeguard our home, wages and pay the important bills, that is my main aim.
I cannot manage without the overdraft and I have concerns about how much barclays fees will eat into the small amount left over each month, hence the concern.
Probably a dumb moment, but please can you explain what ROSO means?
Just to clarify, I haven't defaulted on any credit cards or the bank account as yet and would really prefer not to.
Thank you again.

[PlanB]

Re: Barclays Mortgage.

Maybe you're overthinking this bank account issue. I've found another thread of yours where I see you have an extremely good relationship with Barclays, in fact it's so good they've refunded you £300 in respect of charges on the overdrawn account only last week (unless I've got the wrong account).

I have a Barclays Additions Plus Account and have used the services that the account offers.
Nationwide is offering a better service with their Flex Account, which is also £6 a month cheaper, so I decided to cancel Barclays Additions and sign up for the Flex Account.
However, when I called Barclays telephone banking, I was told that I would need to repay my overdraft and close the account, then open a new one, which surprised me somewhat.
i complained online to Barclays, as I felt this was extremely unfair and an advisor called me back to say that I was given wrong advice, he removed the Additions and changed the account to a standard one with my current overdraft intact.
He also paid £300 into my account, made up of a years fee refund and apology for any stress caused.

[PlanB]

Re: Barclays Mortgage.

please can you explain what ROSO means?

ROSO means the bank's right to rob one of your accounts in credit to satisfy another account in debit.

This is how the Financial Ombudsman Service explains it and how they deal with complaints when the bank gets it wrong. It's an old link but I don't think anything has changed recently:

http://www.financial-ombudsman.org.u.../40_setoff.htm

[PlanB]

Re: Barclays Mortgage.

Both salaries are paid into my account due to prior money problems and of course it has kept barclays sweet. I am quite angry with myself for overspending yet again and being back to losing sleep over money, but the negativity is not helping, so I'm determined to regain some control.

There's no need to lose sleep over this Barclays overdraft which has not been defaulted. I can see you're worrying about it because I've found another thread (No 4 ) started by you on the same subject:

http://forums.all-about-debt.co.uk/s...l=1#post392282

In that thread you said you were going to wait until June/July to make a decision so why not stick to that plan and have no more sleepless nights since you're within your OD limit, you have no mortgage arrears, your credit file is clean as a whistle and you've been successfully married for thirty years. I can't claim to have achieved any of those things and I sleep like a log!