85k Protection Limit

Colinsmoney

I have a Barclays Mortgage and savings providing interest relief on that mortgage amounting to just under 85k.  I want to take out a Cash ISA with a non-Barclays ISA provider who state within their literature that they lodge the ISA monies with Barclays.  

Question:  If the ISA monies are lodged with Barclays, by a non-Barclays ISA provider, will it be looked upon as two individual pots or lumped together taking me over the 85k Protection Limit?

wmb194

Colinsmoney said:

I have a Barclays Mortgage and savings providing interest relief on that mortgage amounting to just under 85k.  I want to take out a Cash ISA with a non-Barclays ISA provider who state within their literature that they lodge the ISA monies with Barclays.  

Question:  If the ISA monies are lodged with Barclays, by a non-Barclays ISA provider, will it be looked upon as two individual pots or lumped together taking me over the 85k Protection Limit?

Can you be more specific on the Isa provider? Some might use Barclays for holding accounts but have their own FSCS coverage e.g., some building societies and small banks.

tetrarch

Just out of interest, why don't you use the Cash ISA at Barclays to offest your mortgage?

That way you keep the tax wrapper and reduce your exposure at the same time

Regards

Tet

PS Edited - you do know that your liability and assets are offset with a single regulated institution

surreysaver

tetrarch said:

Just out of interest, why don't you use the Cash ISA at Barclays to offest your mortgage?

That way you keep the tax wrapper and reduce your exposure at the same time

Regards

Tet

PS Edited - you do know that your liability and assets are offset with a single regulated institution

Surely it's better to use non-ISA savings to offset a mortgage, as that's protected from tax as you're reducing rather than earning interest. There's no point wasting ISA protection (unless maybe you're nearing the end of the mortgage and you're going to transfer the ISA)