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Offset Mortgage

I have an offset mortgage ie. my savings interest is offset against my loan. I realise that for savings I am protected for 85k of my money. However I have more than this in the savings but it offsets the mortgage.

therefore if the bank went under would i lose the savings but still have the mortgage debt?

as you can see slightly confusing, anyone have a view - or where I could validate

Comments

  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    No you would lose the savings but you would also lose an equal amount of the mortgage debt. So you would be no worse off.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • dimbo61
    dimbo61 Posts: 13,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    No UK bank would be alowed to go " under" and most now have to have even more capital in reserve.
  • noh
    noh Posts: 5,817 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    doccer1967 wrote: »
    I have an offset mortgage ie. my savings interest is offset against my loan. I realise that for savings I am protected for 85k of my money. However I have more than this in the savings but it offsets the mortgage.

    therefore if the bank went under would i lose the savings but still have the mortgage debt?

    as you can see slightly confusing, anyone have a view - or where I could validate
    See this thread
    https://forums.moneysavingexpert.com/discussion/3369702=
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