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£35K protection on Offset mortgages?

Hi,

Does anyone know if the £35K protection applies to offset mortgages such as The One Account?

For example if you take out a £100K mortgage with them and put £40K worth of savings into it (remember, you still have access to this money) and the bank collapses, are you left with a net debt of £60K? Or does the protection scheme only guarantee the first £35K, so you are actually left with a larger mortgage than you expect? :confused:

I believe the Virgin One Account is owned and run by RBS.

Thanks!
MSR

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