RBS Offset Mortgage: Savings greater than loan

Tade

Hello,

I have an offset mortgage with the RBS.

The loan amount is 100K against a value of 150K.

I have a savings account offset against this loan with 50K of savings.

I will be getting a gift of 60K in the near future. If I put this in my savings account then it will total 110K. I don't want the loan to be "paid off" as I will need some of this money for house improvements.

So my question is, how will the lender react to me having savings that total more than the loan amount? Will the lender be okay with it, and allow a 0% interest whilst the savings completely offset the loan?

Has anyone been in this situation with RBS before, and know what happens?

Thanks in advance for any advise on this matter
Tade

amnblog

You need to consider whether you want that much deposited with RBS.

http://www.fscs.org.uk/what-we-cover/eligibility-rules/compensation-limits/deposit-limits/

getmore4less

Setoff applies so you don't lose your money.

dimbo61

Just offset the £100,000 and put the other £10,000 in a cash ISA.
You can dip into the offset money as and when you need to pay for Improvements.

Coveredinbees!!!!

I have a positive balance on my offset mortgage, they paid me 2p interest on it last month. They don't care if the balance is positive and keeping it open means I have easy access to cheap money if I need it.

Tade

Thanks everyone. Those answers are helpful

I think we'll put the full amount in the savings account, less the 10k for an ISA.