Offset mortgage and bank going bust

kumar18

Hi guys want some advice on a mortgage i hold. I have a mortgage of about 100,000. I also have an equal amount of savings. How much will i be protected for if the bank goes bust. And yes i have the mortgage with Intelligent finance. Any advice will be gladly taken.

K

_Andy_

This subject has been discussed at length in other threads, if you do a search you should be able to find them.

Locoblade

Worth searching as you're about the 5th person in recent days to ask a similar question

The consensus was though, that if the bank did go bust and the mortgage didnt get taken over by another lender, then debts and "savings" (ie the offset) are merged into one negative balance, the offset amount isn't classed as savings, its classed as a reduction of the debt.

In your case with 100% offset you'd end up with no savings but no mortgage either, as the offset amount would cancel out the mortgage owed. If you then wanted to get back to how you are now but with a new lender, you'd just take out a new mortgage for the same amount, and put all that money back into the offset pot.