Abbey offset mortgage and savings

sgelten

I have a question. I have asn offset mortgage with Abbey with 90% of the mortgage in cash sitting in the account. If Abbey were to go under, would that pay off 90% of the mortgage, or would we lose our money and the massive amount of our mortgage that is, in effect, paid off by having it offset in savings?

jill2002

Your savings sit along side your mortgage with the Abbey Flexi Plus. Therefore, in the unlikely event of any problems, your savings are safe as they are 'offset' against your mortgage and your mortgage balance is lower because of them.

E.g. if you had £100,000 mortgage and £90,000 in your savings pot, your mortgage balance is actually £10,000.

bubblesmoney

jill2002 wrote: »

Your savings sit along side your mortgage with the Abbey Flexi Plus. Therefore, in the unlikely event of any problems, your savings are safe as they are 'offset' against your mortgage and your mortgage balance is lower because of them.

E.g. if you had £100,000 mortgage and £90,000 in your savings pot, your mortgage balance is actually £10,000.

or would only 35k out of the 90k savings be protected while the OP would still owe the outstanding mortgage with who ever buys abbey if abbey went bust and sold in bits by the administrators. just a query. i ask this query because the 90k would be savings and as far as i am aware only 35k is guaranteed by the protection scheme. (unless some other mortgage like offset mortgage (if available) with the likes of post office allowed one to offset the post office savings against postoffice mortgages as postoffice savings are protected upto 90k as owned by bank of ireland where savings are guaranteed till 90k i read in recent mse mail). dont know if post office does offset mortgages btw

minimike2

Its a different scenario with offset apparently. Its somethign thats been looked into a fair bit recently and the general feeling is that any savings in an offset arrangement are coved up to 100% of the mortgage balance.

jill2002

sgelten,

Call into a branch and ask them what your outstanding mortgage balance is - they will tell you the amount less your savings. The £35,000 rule does not apply in this instance, your outstanding balance has been reduced by your savings and your 'available balance' has been increased allowing you to withdraw the amount that you paid into your mortgage as savings, anytime.