One Accounts and the 35k limit

tcmarket

As a great supporter of the various One Account mortgages (mine with Nat West, AKA Royal Bank of Scotland, AKA Virgin One), it occurred to me recently that there may be an issue with regards the governments 35k limit on guaranteeing savings when a Bank collapses. When is Savings actually Savings. I have an offset mortgage with a pre approved overdraft limit tied to my property, but my outstanding balance is far less than the limit. Is the difference classed as savings, or is it purely an overdraft.

Can anyone help?

Tom

Locoblade

Been discussed on here several times and the consensus is that your "savings" and debt would be consolidated into one amount owing, so if you had a £120k mortgage but offset by £100k, if the company went under you'd effectively end up with a mortgage of £20k if the mortgage itself didnt get taken over by another lender as-is. Basically you wouldnt lose anything.