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offset mortgage savings pot...what do i do?
tillybilly_2
Posts: 187 Forumite
Hi,
Hope someone can help, it is probably a silly question so sorry in advance!
We currentlyhave an abbey mortgage with a savings 'pot' that offsets against it. The mortgage is for £265,000 and this is offset against £50,000 savings. I recently read that you should only keep £35,000 max savings with one bank. Does this mean I should take £15,000 and put it somehwere else or does this not apply to offset mortgages?
Many thanks
Tracey
Hope someone can help, it is probably a silly question so sorry in advance!
We currentlyhave an abbey mortgage with a savings 'pot' that offsets against it. The mortgage is for £265,000 and this is offset against £50,000 savings. I recently read that you should only keep £35,000 max savings with one bank. Does this mean I should take £15,000 and put it somehwere else or does this not apply to offset mortgages?
Many thanks
Tracey
It's BOUGHT not bRought 
0
Comments
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The £35,000 figure is in regards to compensation if the bank goes for a burton. That's the limit you are covered for.0
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The £35,000 figure applies if you have no debts with the bank. As you have a debt with the same bank, this is also taken into account, so £265,000 minus your £50,000 means you will still be £215,000 in debt so will be entitled to no compensation anyway. Your savings will just reduce the amount of money you owe.I consider myself to be a male feminist. Is that allowed?0
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In your case, Abey going belly up would just mean you loose the flexibility of your savings. You could take a sum out and keep it in a high-interest cash ISA or somewhere just so you have immediate access to it.I consider myself to be a male feminist. Is that allowed?0
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aahhh, ok thanks everyone!It's BOUGHT not bRought0
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I would recommend reading this thread:
http://forums.moneysavingexpert.com/showthread.html?t=863025&highlight=offset
Not everything is as crystal clear as some think.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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