Might Be Of Interest To Those With London Scottish Bank Fixed Rate Accounts

Sillychuckie

Great
Just heard about this, didn't hear of it in the news at all.
I had a chunk of my savings split between London Scottish Bank, and IceSave. All were fixed rate bonds, and I opted to keep the Icesave ones until maturity.

No doubt I'll be dealing with the FSCS a lot in future. Fortunately none are due to mature too soon.
The earliest is Icesave ones (April next year), and the LSB has a full year to run.
The other place I keep my funds is ICICI, so thats my prediction for the next one to go.
SC.

doingwhatican

Well, I have got a mortgage with them. Due to the fact that I have got a house that is a non standard construction. I was due to get my rate reviewed on the 1st december and I was hoping to see some of the benefits of the massive rate drops that the LIOR rate has also seen. I suppose I will have to contact them to see if and when they will be adjusting the rate I currently pay them as the LIBOR has dropped around 2% - this will make a big difference to my payments.

info_addict

Just received my FSCS compensation claim letter. So things are progressing.

I have/had a High Interest Fixed Rate Bond with London Scottish and for others in the same position, you have to fill in your claim compensation form and return it now, then wait until you bond matures.

Fine by me :T

The letter states " If you hold such a bond, you will need to wait until the end of the fixed term to receive your compensation. This will include the principal and any interest that would have been due at maturity."

cepheus

info_addict wrote: »

Just received my FSCS compensation claim letter. So things are progressing........ The letter states " If you hold such a bond, you will need to wait until the end of the fixed term to receive your compensation. This will include the principal and any interest that would have been due at maturity."

Same with me, I suppose we need to fill this in now even if we have a long term bond?

In a way this is better than if the London Scottish still held the money since we effectively hold an high interest bond with the UK Treasury now.

info_addict

Yes, you have to fill in the form now and return it. I rang the FSCS to make sure, as it wasn't that clear in their letter. They said return it now and then wait until the bond matures.

Agree with your other comment, very happy to let my bond run for another 2 years @ 6.76%

snodgrass

I have just found out today about the situation,no letters or anything yet to tell me the state of things,found out by chance by being on the internet today.
I am a bit worried,as on the understanding of my bond maturing Jan 19th 2009,i have just agreed to buy a house for cash outright last week,contracts are about to be signed etc,and we have until January 26th to finalise with the sellers,because that is when they agreed to move out.
Now what with what is going on,we fear the deal may fall through.
We have been advised by the FSA to write a letter stating all this about our housing arrangements etc,and add to our compensation form when it arrives tomorrow or Monday.But they said they could not really guarantee we would have our money exactly on time what with,understandably 1000's in the same financial situaution.
We will have to hope that the sellers are understanding and gives us a few weeks leeway over the agreed date for the finances to be sorted.
But we are really worried that we may lose the house now,what with the situation.

1echidna

I too received my letter from the FSCS today and have completed and returned the claim form. My "High Interest Bond" at 6.85% AER matures mid January. Time will tell when I actually get my hands on the money after it matures and then I will have the problem of what best to do with it. Not at all easy in the present climate. I am fortunate though not to have snodgrasses's problem above. I wish him good luck.

Ian_W

snodgrass wrote: »

We will have to hope that the sellers are understanding and gives us a few weeks leeway over the agreed date for the finances to be sorted.
But we are really worried that we may lose the house now,what with the situation.

In the current market have the sellers any option? A cash buyer - you're gold dust to them I would have thought.
Anyone else, unless they're in the same position as you with cash, will be very lucky to be able to complete quicker if they have to arrange a mortgage, searches etc.
Why not contact the EA/seller to let them know the potential problem ASAP, the delay may not be as bad as you think given that most will be keeping their fixed rate going and there'll only be those whose bond matures in January to be paid out.

BoL anyway.