I.F. - can an advisor help please???

Confused_Mel

Dear All,

I hope someone can help with the following:

Have an offset tracker on SVR with I.F. Looking to increase our mortgage as we are moving house. We have been told the money has to be put into our current account before we can "port" it over to the new property. So we will have to start paying for the new mortgage before we have even exchanged contracts! Can this be correct??? Why can't it just be transferred at completion?

This also worries us as it will take us way over the FSCS compensation limit when the mortgage is put into our savings pot. What happens if HBOS/Lloyds go under?

Will the extra money be classed as our savings or as a loan?

Would our solicitor be able to hold any of the funds for us until completion?

Many thanks,

Confused Mel

Forever_Red

Confused_Mel wrote: »

This also worries us as it will take us way over the FSCS compensation limit when the mortgage is put into our savings pot. What happens if HBOS/Lloyds go under?

I personally can't see that happening, as the Government are the majority shareholders and they would probably pump more money into this bank to keep it going.

Alan