FSCS protection before house purchase

dunroving

I believe I am correct that FSCS protection extends beyond £85k temporarily, in circumstances such as a large deposit from a deceased's estate or from the proceeds of the sale of a house.

Does the same apply when temporarily increasing an account balance prior to purchasing a house?

G_M

Yes.

Proceeds resulting from the following life events are categorised as temporary high balances:


Sums paid to the depositor in respect of:

• Real estate transactions (property purchase, sale proceeds, equity release)
• Benefits payable under an insurance policy
• Personal injury compensation (unlimited amount)
• Disability or incapacity (state benefits)
• Claim for compensation for wrongful conviction
• Claim for compensation for unfair dismissal
• Redundancy (voluntary or compulsory)
• Marriage or civil partnership
• Divorce or dissolution of their civil partnership
• Benefits payable on retirement
• Benefits payable on death
• A claim for compensation in respect of a person's death
• Inheritance
• Proceeds of a deceased's estate held by their Personal Representative

https://www.fscs.org.uk/what-we-cover/compensation-limits/deposit-limits/

ValiantSon

dunroving wrote: »

I believe I am correct that FSCS protection extends beyond £85k temporarily, in circumstances such as a large deposit from a deceased's estate or from the proceeds of the sale of a house.

Does the same apply when temporarily increasing an account balance prior to purchasing a house?

What is the source of the funds? If it is one of those listed in the post above, then yes, but if it is simply you moving existing savings from other accounts, then no. The first item on the list refers to proceeds from a property transaction, not moving funds to prepare to make a property transaction.

AirlieBird

ValiantSon wrote: »

What is the source of the funds? If it is one of those listed in the post above, then yes, but if it is simply you moving existing savings from other accounts, then no. The first item on the list refers to proceeds from a property transaction, not moving funds to prepare to make a property transaction.

The temporary high balance covers funds placed in an account in preparation for a house purchase, providing evidence is provided by the conveyancer or estate agent detailing the offer made and the status of the offer on the day the bank failed.

ValiantSon

AirlieBird wrote: »

The temporary high balance covers funds placed in an account in preparation for a house purchase, providing evidence is provided by the conveyancer or estate agent detailing the offer made and the status of the offer on the day the bank failed.

If that is the case then it isn't explained on the FSCS website, but I am happy to stand corrected.

dunroving

Sounds like "Yes, definitely maybe", then. ;-)

I read through that list and they all read as transactions in which the account holder is the recipient of money from some other entity.

In terms of the first, it seems more a case such as a solicitor receiving funds necessary to proceed a house purchase. My concern is that "paying myself" to enable a simpler transaction to the solicitor wouldn't be covered.

The money for my house purchase is in multiple accounts, some of which are savings accounts. It is much simpler to pay from these to my current account than to another party (solicitor ). I could then transfer easily to the solicitor in one lump from my current account.