£35,000 is safe if bank goes bust.....but what if.....

jmt

Hello all,

I was just wondering what would happen if a bank went bust in this country and you had £100,000 in a savings account which was offsetting the £101,000 you had as a mortgage with the same bank.

I only ask as I have recently applied for a remortgage to enable me to buy a new property. The money came through and is in the offset savings account, but unfortunately the house I was buying has fallen through (seller pulled out!)

Would I be left with £35,000 in savings and a 101,000 debt to pay? :rolleyes:

Thanks

setmefree2

Hi

You should read this

Are my Savings Safe

There is abit in this article on offset mortgages - the section


"Any debts with the same institution are subtracted from your savings"

SMF2

Comfortably_Numb

setmefree2 wrote: »

Hi

You should read this

Are my Savings Safe

There is abit in this article on offset mortgages - the section


"Any debts with the same institution are subtracted from your savings"

SMF2

An interesting article, and it mentions that the £35,000 limit is likely to be increased to £50,000 this autumn.

Is that still a possibility?

altocumulus

Comfortably_Numb wrote: »

An interesting article, and it mentions that the £35,000 limit is likely to be increased to £50,000 this autumn.

Is that still a possibility?

mmm, that plan seems to have gone a wee bit quiet ...

Stavros_3

Read somewhere this morning that it could be spring now

ruggedtoast

Stavros wrote: »

Read somewhere this morning that it could be spring now

HSBC can kiss goodbye to some of my savings then.

Ive got the jitters!

jmt

Hello, and thanks for your replies.

I think i'll transfer £30,000 to somewhere else for 6 weeks and hope that Barclays don't follow Lehman, but then again Barclays want to buy up some of Lehman (surely they would not be doing this if they were on the verge on collapse).


I am now buying somewhere else (got a bargain) and will exchange and complete on 24th Oct.

Thanks