Offset Mortgage - might I owe it all!

silvercar

If the bank goes under, your mortgage is a valuable asset and would be packaged up and sold to another bank.

Depending on how the offset has been set up you could find that you owe £200k and don't have access to the £300k further borrowing.

arkie

KiKi wrote: »

With an offset you'd keep the debt once the savings were taken into account, though.

I'm sure that Martin said if a bank went bust with no government bail out that the debt is wiped...last Friday on Radio 2. Happy to be corrected, I'd like to know myself!

KiKi

If Martin did say this ..
then dont beleive everything Martin says !!!! the debt will still be owed and payments will have to be made. Sometimes people (Martin) with little knowledge are very very dangerous.

I only thanked you to highlight what stupid things people say on the radio .

nobblyned

OP, you owe barclays net £200k. If they went bust, this debt would be sold to someone else, you would still owe only 200k.

As for Martin saying otherwise, I find that hard to believe. In fact in the Northern Rock debacle, he went as far as to say that if they went bust you would still owe the debt to someone, whether the debt is sold, or you owe it to the liquidators, it won't just disappear.