£50000 compensation rule change

1echidna

Ah yes but if you have large calls for cash you have it availlable without the problem of negotiating a loan (should your £38,000 remain safe)

ajbell

Yes, i thought so but the official explanation is so complicated it does not make that clear, and it is hard to believe that people would think they would get their money back but lose their debt.

Lokolo

To be quite frank, this was pretty pointless as no BS or Bank is going to fail lol. Well lets give it a few weeks before I say for certain

EalingSaver

ajbell wrote: »

Hi.
If the loan or mortgage is wiped out when the bank/building society goes bust then it doesn't matter as you don't owe the money any more.

Why on earth would your mortgage/loan be wiped out if the lender went bust??????? They would go into administration, and any loans they have out are ASSETS (unlike deposits which are LIABILITIES as they are in effect an IOU). Your debt doesn't cease, it just passes to the administrators (or perhaps more accurately, your debt is an asset which the creditors will be hovering over).

There are no free lunches in life; otherwise we'd all be taking out loans from the dodgiest looking institutons possible.

To the other question as to why separate your savings and debts, others have answered sufficiently.

And this is not a change to the current arrangements.

ad44downey

The precedent was set with Northern Rock. And reinforced with Bradford and Bingley. The government offers a £100%, no upper limit savings guarantee.

So forget all this £35K, £50K guff. Sit back and relax and get on with your life. Stop worrying! You're like a crowd of old women