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Bank Compensation Scheme with "offset style" mortgages

I know people will be entitled to £50k compensation per banking institution, should anything happen to the bank -

What I would like to know is what happens if you have a mortgage outstanding with the same bank to the value of your savings... ie the ones where you have sperate accounts for savings and mortgage and current account etc, that are linked together for interest purposes.

Also, what would be the outcome if you had a regular mortgage with the same institute as your savings and your savings were in excess of your mortgage debts (strange, but I know it does happen!)

I guess what I am getting at is do you loose your savings and still owe the mortgage debt, or is the debt taken off your savings balance before working out your balance and compensation.

Thanks
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