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Calling all offset mortgage holders!

(20 Posts)
janinlondon Wed 01-Oct-08 12:06:35

Are you moving your offset savings in the light of recent developments? Just looking to see if anyone has any ideas on this....TIA.

mumblechum Wed 01-Oct-08 12:11:45

Don't have an offset mortgage, but heard on Moneybox the other day that if your bank goes under, they take the savings and offset it against your loan. so if your loan is £100k and your savings are £30k, those savings aren't protected under the usual £35k legislation, and will be absorbed into reducing your liability.

don't quote me on that, was only half listening grin

furrycat Wed 01-Oct-08 12:14:59

Mumblechum is right.

Yup,we have moved some savings. It's a tricky balance because we don't want our mortgage to shoot up!

janinlondon Wed 01-Oct-08 12:15:22

That's where I'm coming from Mumblechum. But I'm wondering if I'm becoming a victim of the scaremongering.....! blush

janinlondon Wed 01-Oct-08 12:15:43 I am not alone FC!

furrycat Wed 01-Oct-08 12:17:43

We have an offset because we are both freelance and we need to have some cash to fall back on if necessary. While you wouldn't lose out because the savings would pay off part of the mortgage if the bank went bust, it rather defeats the object of having savings in the first place.

I think moving some out is sensible given the climate and also given that offsets are not protected by the 35k rule

noddyholder Wed 01-Oct-08 12:18:19

mumblechum is right.Def move savings while you see how things pan out althugh some providers are less risky than very good

janinlondon Wed 01-Oct-08 12:19:09

I am with you FC. We put aside money for tax (DH is self employed) in our offset, but it would be a disaster if that was swallowed by the mortgage debt.

MingMingtheWonderPet Wed 01-Oct-08 12:20:56

Wow, I never knew that.
we have offset mortgage with Coventry Building Soc and didn't realise that savings were not guaranteed. I guess you don't exactly lose it cos it goes against your mortgage, but that is our savings in case DH is not working.
Must look into it further.

janinlondon Wed 01-Oct-08 12:21:47

Right, Moving savings now to HSBC.

zippitippitoes Wed 01-Oct-08 12:22:28

i have an offset mortgage with abbey santander but no savings

but as they are already in the santander group i cant see anything going amiss there amnyway

janinlondon Wed 01-Oct-08 12:23:23

You have an offset but no offsetting?

mumblechum Wed 01-Oct-08 12:23:58

You have to be so careful where you put your cash, as so many banks are owned by others, eg we have accounts with IF, Halifax and Bank of Scotland, so only one lot of £35k is covered.

Have just opened accounts with ING and NatWest.

janinlondon Wed 01-Oct-08 12:26:01

Quite right Mumblechum. I am moving savings from IF to HSBC. God help us if the HBOS deal fails and HSBC step in!

annmar Wed 01-Oct-08 12:27:59

From what I understand, if you have more than £35k in savings offset against a mortgage, then you don't lose any of the money, it is all used towards paying off your mortgage.

If you have more than £35k in a savings account not offsetting your mortgage, then you lose all your money over the £35k limit.

It depends on circumstances, whether you need to move your money or not.

noddyholder Wed 01-Oct-08 12:43:00

HBOS deal is not concrete better in national savings,Northern rock have stpped all new accounts as i tried them!

zippitippitoes Wed 01-Oct-08 12:43:57

yes i have an offset but no offsetting

i dont have an income

janinlondon Wed 01-Oct-08 12:56:44

Mainly restricted by what existing accounts we already have I think - takes too long to open a new one and do the transfer, even if we could get a new account!

ThingOne Wed 01-Oct-08 12:58:57

I have an offset and no offsetting too - it was just the best deal when we moved house.

zippitippitoes Wed 01-Oct-08 13:00:12

mine was self certified through a broker so was quite lucky to get a decent one tbh

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