FSCS protection with offset mortgages

Hello,

I'm considering an offset mortgage, does anyone have any information about what happens if your savings cross the FSCS threshold and the bank goes bust? Do you lose the difference or are you ultimately not at a loss should this situation arise?

Thanks.

Replies

  • miss_undastoodmiss_undastood Forumite
    233 Posts
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    Forumite
    I believe you need to be under the 85k per person in savings to be covered.

    I’m not 100% sure but this is what I believe applies and moneysupermarket seems to agree too see here/
    Mortgages Oct 2020: £308,283 Jul 2021 £286,600 October 2022 £253,456 MFW-22 #9 MFIT-T6 #35
  • siliconvalleysiliconvalley Forumite
    2 Posts
    Newbie
    Contacted Coventry building society and got great advice (modified slightly to not reveal my personal finances)
    The Financial Services Compensation Scheme covers individuals savings up to a maximum of 85,000 GBP. If you were to have savings above this limit, the surplus funds would then be taken from the mortgage debt as long as the mortgage is held with the same provider.

    Your current mortgage product allows you to over pay by 10% of the balance brought forward on the 01 January each year. This means that until the 31 December this year you have the ability to make overpayments to the amount of XX,XXX GBP before any penalties may be charged. These over payments will be taken off the mortgage balance.
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