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    • dadsgoneshopping
    • By dadsgoneshopping 11th Mar 18, 7:34 PM
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    dadsgoneshopping
    Hypothetical question- Paying with £20 coin
    • #1
    • 11th Mar 18, 7:34 PM
    Hypothetical question- Paying with £20 coin 11th Mar 18 at 7:34 PM
    Hi-

    Hypothetically, could I settle my mortgage (or part of it) with the £20 coin? I note that they are NOT accepted in banks or shops, but ARE legal tender. I bought a bunch of them a few years back and now cannot shift them at face value, could I pay my month's mortgage with them?

    Thanks!
    Last edited by dadsgoneshopping; 11-03-2018 at 8:59 PM. Reason: poor writing
Page 1
    • AnotherJoe
    • By AnotherJoe 11th Mar 18, 8:25 PM
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    AnotherJoe
    • #2
    • 11th Mar 18, 8:25 PM
    • #2
    • 11th Mar 18, 8:25 PM
    AIUI, no. Legal tender only means what a court will accept.

    Private businesses are not bound by those rules. Tesco would be quite at liberty to say they weren't accepting 20p coins for example.
    • dadsgoneshopping
    • By dadsgoneshopping 11th Mar 18, 8:41 PM
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    dadsgoneshopping
    • #3
    • 11th Mar 18, 8:41 PM
    • #3
    • 11th Mar 18, 8:41 PM
    Hi AnotherJoe,

    That is not my understanding:

    Legal tender has a very narrow and technical meaning, which relates to settling debts. It means that if you are in debt to someone then you canít be sued for non-payment if you offer full payment of your debts in legal tender.


    http://edu.bankofengland.co.uk/knowledgebank/what-is-legal-tender/
    • TrickyDicky101
    • By TrickyDicky101 11th Mar 18, 8:48 PM
    • 3,005 Posts
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    TrickyDicky101
    • #4
    • 11th Mar 18, 8:48 PM
    • #4
    • 11th Mar 18, 8:48 PM
    Perhaps you should ask your lender whether they would accept your £20 coins? Then you'll know.
    • Thrugelmir
    • By Thrugelmir 11th Mar 18, 9:07 PM
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    Thrugelmir
    • #5
    • 11th Mar 18, 9:07 PM
    • #5
    • 11th Mar 18, 9:07 PM
    could I pay my month's mortgage with them?
    Originally posted by dadsgoneshopping
    Is your lender a bank?
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • dadsgoneshopping
    • By dadsgoneshopping 11th Mar 18, 9:26 PM
    • 215 Posts
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    dadsgoneshopping
    • #6
    • 11th Mar 18, 9:26 PM
    • #6
    • 11th Mar 18, 9:26 PM
    HI,

    Not a bank a building society.
    • unforeseen
    • By unforeseen 11th Mar 18, 9:42 PM
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    unforeseen
    • #7
    • 11th Mar 18, 9:42 PM
    • #7
    • 11th Mar 18, 9:42 PM
    Hi-

    Hypothetically, could I settle my mortgage (or part of it) with the £20 coin? I note that they are NOT accepted in banks or shops, but ARE legal tender. I bought a bunch of them a few years back and now cannot shift them at face value, could I pay my month's mortgage with them?

    Thanks!
    Originally posted by dadsgoneshopping
    No but if you want to pay off the WHOLE mortgage with legal tender then they should accept it
    • dadsgoneshopping
    • By dadsgoneshopping 11th Mar 18, 9:45 PM
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    dadsgoneshopping
    • #8
    • 11th Mar 18, 9:45 PM
    • #8
    • 11th Mar 18, 9:45 PM
    Wish I could pay the lot off, but that is many years (or a lottery win) away. £20 coins are going for about £15-£17 at the moment on ebay, if I had the money to buy a bunch more, I could effectively make a massive saving on my mortgage, if it were possible.
    • AnotherJoe
    • By AnotherJoe 11th Mar 18, 9:54 PM
    • 9,404 Posts
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    AnotherJoe
    • #9
    • 11th Mar 18, 9:54 PM
    • #9
    • 11th Mar 18, 9:54 PM
    Hi AnotherJoe,

    That is not my understanding:

    Legal tender has a very narrow and technical meaning, which relates to settling debts. It means that if you are in debt to someone then you canít be sued for non-payment if you offer full payment of your debts in legal tender.


    http://edu.bankofengland.co.uk/knowledgebank/what-is-legal-tender/
    Originally posted by dadsgoneshopping
    I stand corrected I misread that.

    Which means there is a chance for someone to arbitrage these by buying at £17 and settling the debt at £20. Good luck !
    • dadsgoneshopping
    • By dadsgoneshopping 11th Mar 18, 10:02 PM
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    dadsgoneshopping
    I am not actually in a position to take advantage of this myself in any great way. I have £200 of the £20 coins, I bought them thinking that they may increase in value but at the least would retain their value, I was wrong. But it might be worth a punt...
    • Edi81
    • By Edi81 12th Mar 18, 6:01 AM
    • 450 Posts
    • 311 Thanks
    Edi81
    I!!!8217;ve just had a quick look on the Royal Mint website that states:

    However, while it is indeed legal tender, it has not been designed to be used as a circulating coin. This means that while you would be OK to use it in the settlement of a debt in court, for instance, your local shop or bank probably won!!!8217;t accept it in trade for goods, as the mechanics and systems are not in place to enable that. The highest denomination coin in general circulation today remains the £2 coin, first introduced in 1998.

    The £20 coin has been created with the intention of being a commemorative coin, produced in limited editions and sold at face value (£20) to be bought and kept by collectors or someone looking for an affordable, sterling silver memory of a key personal event or occasion.

    Doesn!!!8217;t sound too hopeful!
    • Brock_and_Roll
    • By Brock_and_Roll 12th Mar 18, 9:25 AM
    • 824 Posts
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    Brock_and_Roll
    Can you pop down to the Bank of England in person and exchange at face value or does that only apply to old bank notes?
    • dadsgoneshopping
    • By dadsgoneshopping 12th Mar 18, 12:59 PM
    • 215 Posts
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    dadsgoneshopping
    I don't think the BoE will accept them- not sure though.
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