What would happen if my mortgage lender went bust?

Susan657

Hi folks,

Headline news today, local authorities withdrawing millions of pounds from building society's as financial advisors tell them that they can make better returns elsewhere.

Is it possible that this could cause them to go bankrupt and if so what could happen to someones mortgage / house?

Cheers,
Sue

Kavanne

Surely the debt would be sold on so you would just start paying to someone else.

molerat

The mortgage book would be sold off to another institution and life for you would carry on as normal.

dunstonh

Santander or Lloyds would be encouraged to take it on or it would just be added to the Governments bad lender book as Nothern Rock and Bradford & Bingley were.

ytfcmad

molerat wrote: »

The mortgage book would be sold off to another institution and life for you would carry on as normal.

So if you've got a £100k mortgage and your lender goes bust borrow £50k buy the debt then write it off and then all you need to do is pay off the £50k Bingo!

molerat

ytfcmad wrote: »

So if you've got a £100k mortgage and your lender goes bust borrow £50k buy the debt then write it off and then all you need to do is pay off the £50k Bingo!

If only things were that simple