Offset mortgage above the FSCS limit

OUNN

Hi folks,

Looking for your thoughts really.
We have an offset mortgage with a value outstanding of about 130k.

We're have an overpayment limit of 99.9%.
Because of some rather unhappy circumstances, we are able to offset the full balance. We would rather do this than overpay the 99.9% (house renovations etc coming up so will need to dip in to the money).

The offset account is not with the mortgage lender, but with another linked bank. What I'm trying to decide is whether to overpay the mortgage down to the FSCS limit (£75k or £85k) and then offset the balance, or to just leave the full balance offset.

I'd like to think if something happened to the banking group, they'd kind of look at it like "well you owed us 130k, but you had 130k deposited with us, so we're even"

But I'm a realist.

What are your thoughts? What would you do? (Apart from pay off the mortgage)

AnotherJoe

Presumably this is only a temporary situation so I'd just stay as is. You aren't risking the £130k are you, its £45k.

silvercar

The offset account is not with the mortgage lender, but with another linked bank.

I'm confused by this. Which lender allows your offset savings to be with a different bank?

AnotherJoe

At a guess, Woolwich / Barclays ?

getmore4less

Setoff still applies so you don't lose the money

OUNN

It's Accord/Yorkshire.

Temporary for a couple of years (while it's fixed and had the ERC) dipping in for extensions/renovations and topping back up

getmore4less

Is accord not Yorkshire for intermediary. IE. same place