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  • FIRST POST
    • met.ty
    • By met.ty 18th May 19, 10:09 AM
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    met.ty
    FSCS and offset savings
    • #1
    • 18th May 19, 10:09 AM
    FSCS and offset savings 18th May 19 at 10:09 AM
    Hi. This is hopefully an easy one to answer:
    I have an offset mortgage with Yorkshire Building Society, with linked offset savings accounts. I am in the very fortunate position that my current balance in this offset account exceeds the FSCS limit. It is less than the outstanding mortgage balance, though.

    My thinking is that, even if YBS run into difficulty I should not be at risk of losing money as any loss of my savings would be deducted from my mortgage balance, given that these accounts are linked?
    Is this correct? Many thanks!
Page 1
    • Shedman
    • By Shedman 18th May 19, 10:41 AM
    • 302 Posts
    • 204 Thanks
    Shedman
    • #2
    • 18th May 19, 10:41 AM
    • #2
    • 18th May 19, 10:41 AM
    Presumably you can't repay and draw from your offset mortgage at will (as we can on our FD offset) hence why you have such a high balance in your savings account?

    Quick glance at this link https://www.ybs.co.uk/help/savings/fscs.html

    does read like they only cover the deposit and don't reduce the deposit balance by the outstanding mortgage amount in assessing whether it's within the 85k. Best way is to contact YB and ask just to be sure though.

    Is it a joint mortgage / savings account in which case won't you get 170k cover (or do you already have more than that in the savings account)?
    • Glover1862
    • By Glover1862 18th May 19, 11:01 AM
    • 292 Posts
    • 140 Thanks
    Glover1862
    • #3
    • 18th May 19, 11:01 AM
    • #3
    • 18th May 19, 11:01 AM
    OP, I’ve been thinking about the same just I have a Coventry BS offset. I’d assume they take the balance of the mortgage, I think I even checked a few years ago.
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