What’s the interest rate on my Mortgage Reserve?

All borrowing on the Mortgage Reserve is on an interest-only basis.

For Offset mortgages, the interest rate for the Mortgage Reserve is the same as the rate for the main mortgage. For all other Woolwich mortgages, the Reserve interest is charged at Bank of England Base Rate + 3.49%.

You can make payments to reduce the outstanding amount on your Mortgage Reserve at any time. But if no repayments are made, the interest will continue to accrue on the increasing balance.