Safety of offset mortgage savings

I'm unable to find a discussion on the safety of large sums of money in an offset savings account since a previous forum in 2008 and wondered if there was any update on what seemed uncertain back then.  We are taking out an offset mortgage for 500k.  For the first few years we will have about 300k in our offset savings account with the same bank.  If the bank or building society went bust would the money in our savings account be used to clear some of our mortgage debt or is there a situation where we could lose all our savings (minus what is covered by the FSCS ie. 170k) and still retain the debt?  Thanks


Meet your Ambassadors


  • All Categories
  • 340.2K Banking & Borrowing
  • 249.1K Reduce Debt & Boost Income
  • 448.3K Spending & Discounts
  • 232K Work, Benefits & Business
  • 603.2K Mortgages, Homes & Bills
  • 171.6K Life & Family
  • 245.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards