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joint offset mortgage and joint savings is guaranteed savings £35k*2?
huppy
Posts: 1 Newbie
IMartin writes "f you’ve more than £35,000
This gets more complicated for larger amounts. The maximum compensation level on your savings remains at £35,000, meaning any savings above that amount would be lost.
For someone with an offset mortgage owing £150,000 but with £80,000 in savings, if the bank went bust the first £35,000 of savings are protected, so it would immediately be subtracted from your outstanding debt, but you would lose the remaining £45,000. Meaning it's possible, and there are various interpretations, you would still owe £115,000, the debt would probably be passed on, but you'd have no savings.
This does mean that if safety were the only consideration (rather than rate as well), it would be sensible not to offset more than £35,000 in a mortgage"
Question is:
If you have an joint mortgage and offset joint savings does the £35000 figure become £70000?
This gets more complicated for larger amounts. The maximum compensation level on your savings remains at £35,000, meaning any savings above that amount would be lost.
For someone with an offset mortgage owing £150,000 but with £80,000 in savings, if the bank went bust the first £35,000 of savings are protected, so it would immediately be subtracted from your outstanding debt, but you would lose the remaining £45,000. Meaning it's possible, and there are various interpretations, you would still owe £115,000, the debt would probably be passed on, but you'd have no savings.
This does mean that if safety were the only consideration (rather than rate as well), it would be sensible not to offset more than £35,000 in a mortgage"
Question is:
If you have an joint mortgage and offset joint savings does the £35000 figure become £70000?
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