uk.finance

"Tom Bradbury" < @ > wrote in message
news: $ @ ...
>> If I have £100k mortgage and £50k savings, would the safest place for my
>> savings be the bank/bs where I have my mortgage?
>>
>> Would I be seen as a customer with £50k debt or are the two items
>> considered separate.
>>
>> Just hypothetical in my case.
>>
>
> I asked Egg the very same question last week when all the stuff was going
> on with Northern Rock. I have an offset mortgage with Egg. Mortgage is
> now not far from being completely offset by savings. I asked Egg what
> would happen if the bank went bust - would I only be indebted to the bank
> for the net difference between mortgage and savings? Egg said no - I
> would be fully liable for the outstanding mortgage, but the first £35,000
> of savings would on be guaranteed, but would only get £31,700 back. I
> might lose anything above £35,000. That makes me feel somewhat
> uncomfortable.

I would have to say they are speculating in their favour - morally/legally
they would have to consider both credit and debit and the difference between
the two - course you wouldn't volunteer to replace any monies of yours that
they had lost and they would have to take you to court and they would lose