Mortgage overdraft limit reduction. Worth getting Ombudsman involved?

[dgs]

Hi guys ............... A quick question
As you may be aware, certain banks seem to be changing the goalposts in regard to mortgage overdraft limits?
I have banked with Barclays for over 44 years so you can imagine how much they have had out of me over the years with accounts and mortgage and pension and charges for certain accounts etc etc.
I am in November of 2018 coming to the end of my mortgage and loan that I owe (currently about 12500).
I have had since the beginning of the original mortgage a mortgage overdraft facility which currently is at about 21500 and I make no monthly payment on that but in interest the charge at the moment is around £89 per month.
The original limit was originally in the £30000s and was reduced by them about 18 months ago to £28500.
This is all well and fine by me, because I know at the end of the day I will have to do one of two things ...
Either downsize and pay off anything I owe and pay them back the overdraft, or find the money (my brother may put £75000 (quarter share in our property) then pay off anything I owe and pay off the overdraft.
Recently (about 3 months ago) they reduced the overdraft limit down to £22500, within a £1000 of what I owe.
I have challenged it with them but they are not budging, I had a meeting with somebody at our main bank and the guy there really didn't understand why they had done it as well but he made various phone calls and representations but eventually he had to tow the line.
He couldn't understand especially as I would have on the due date about £278000 in equity in the house.
After all the loyalty I have shown them over the years it seems it comes down to a calculator they use to determine their answer.
I would like them to return the limit back to somewhere near where it was and not to a limit that I will reach if not careful before the mortgage end Nov 2018

Would the Financial Ombudsman Service be worth a look on this and put my case to them?
Either way they will get their money back? £22500 or whether its £28500 does it really make much difference? when what they have done could cause me a few problems.

[Kati]

Re: Mortgage overdraft limit reduction. Worth getting Ombudsman involved?

:bump:ing for [MENTION=87380]Diana M[/MENTION] [MENTION=48934]Debt Camel[/MENTION] xx

[Diana M]

Re: Mortgage overdraft limit reduction. Worth getting Ombudsman involved?

I think it will be a good idea to break your problem down into bite sized chunks

There's a mortgage (interest only or repayment?) of £X at the start (what date?) which has £Y remaining on it due to be paid off by the end of November 2018.

There's a loan (secured or unsecured?) of £X at the start (what date) which has £Y remaining on it due to be paid off by what date (November 2018)?

You have a pension plan (how much?) with Barclays.

You have an overdraft facility with an original agreed £12.5k limit.

Are these financial product's linked in some way? In other words does Barclays have a charge over your property which covers all the money they've lent/advanced and/or the agreed (and possibly unagreed) overdraft?

Di

[Debt Camel]

Re: Mortgage overdraft limit reduction. Worth getting Ombudsman involved?

Most overdrafts are completely discretionary facilities, they can be withdrawn at any point. Barclays says (Mortgage reserve is its name for a mortgage overdraft):

"This Reserve is repayable on demand and must be repaid on redemption of the mortgage. "

You would have to check the T&Cs on your overdraft to see if it is non standard and the above does not apply, but I would be very surprised.

Assuming it is repayable on demand, you don''t have a reason to challenge this and the Ombudsman would not uphold a complaint.

You may be planning to deal with this all in 2018 but they have plenty of customers who are doing an ostrich act and ignoring looming problems. This is a pretty sensible move on their part. They haven't reduced the overdraft below your current usage. It is not unreasonable.

I would like them to return the limit back to somewhere near where it was and not to a limit that I will reach if not careful before the mortgage end Nov 2018

So if you are careful this won't cause a problem but if you aren't you may spend an extra 6k? I suggest you start being careful. Barclays have done you a favour doing this ...

[C5den]

Does it make a difference if Barclays made it a condition of the mortgage that you took this reserve out?