Can any money experts help me with Standard and Poors credit ratings?

[RambleOn]

I have a mortgage with Nationwide, and savings with Cheshire BS. I understand that they are to merge in Dec and take on the same licence under the Financial Services Compensation Scheme.

I am trying to work out how safe the Cheshire is for my savings, as losing this money to pay off the mortgage in the event that the group went under would be disasterous for me.

I have found the S&P credit rating webpage, but can't find the Cheshire on it? And tbh, not sure if I'd understand the rating even if I found it!

I seem to be running out of safe places to stash my money.

It's a longshot, but thought someone might know

Your savings will be 100% protected up to £35k per person - ie £70k if held in joint names. If you have savings with Natiowide also this is the total figure across both brands. The government is about to up it to £50k per person but at he moment the stance is that they would not let any British bank fail and leave savers out of pocket, so I would say you are pretty safe at the mo.

But my savings would disappear, paying off some of the mortgage. I can't let this happen.

And they said that about BCCI in 1991!

Okay I've just read the OP correctly this time. I believe that the two would/could be offset in the event of Nationwide going belly up. However I know that stranger things have happened but I would not be to worried about this. There are still loads of other banks you can put your savings with though if it really troubled you.

S&P website should have a page explaining their ratings.

I think Bradford is the more financially sound between the two of them, judging by FSA forcing Cheshire onto Bradford.

Sorry, I should have explained better in my OP.

I have a joint mortgage with my exP. We are currently separating, but still living together until the house is sold. We will then split the equity approx 50/50.

He is not entitled to 50% of my savings however, so I really DON'T want the savings offset against the mortgage, as he would then get a 50% share in my savings as well.

I have quite a considerable amount of savings scattered about across various companies, but am running out of places.

Just my opinion but anyone small is at risk at the moment, the unthinkable is already happening. If you're really, really worried the big boys who've been more conservative are safer, ie HSBC, Lloyds, Barclays. If you want to be really sure then stick it into the Post Office (covered under the Irish Gov we'll guarantee every single penny scheme) or National Savings NS&I (via the post office etc) which is guaranteed 100 per cent by the treasury, ie the government. Interest will probably be less but if you're worried about whether it will be there at all then to be really safe you have to take a hit on interest. It's called determining your risk appetitie in the business, equivalent to remember shares can go up as well as down etc blah! Am intrigued if you have big savings why you don't pay it off the mortgage now, in general terms you'll be paying more to borrow the mortgage money than the interest you'll be getting on your savings. Do you have a penalty or similar. The thing to really dream of is the gov letting the organisation go down that has your mortgage, then there's an outside chance they'd write your mortgage off!

Why not move your savings to Northern Rock which is fully guaranteed by the government so you can't loose anything ?

Ratings are an indicator of an organisations ability to meet its financial commitments. I wouldn't use this to decide where to put my money as they are only an indicator. Also Lehmans, HBOS, Morgan Stanley, etc have all had pretty strong ratings previously.

If you are really worried look at Gilts which at Govt backed. It is worth remembering that no UK investor has lost their money to date and it is unlikely the govt would allow it to happen.

..Or do as a friend has done and buy a sportscar to enjoy the money whilst he has it!
A

Thanks for your responses.

bumbling - my post of 15:41 explains why I haven't paid it off the mortgage. The savings would almost pay the mortgage off outright, but it would mean I would be effectively handing over 50% of my savings to my selfish, adulterous expartner.

I am desparately trying to retain this money, hard saved by myself and including inheritence and redundancy money, as a means of housing myself and our child (soon to be two children).

choogirl - I would loooove to buy a sportscar, but it wouldn't be a roof over our heads! Gilts interesting, will investigate, thanks.

Hi Rambleon - Didn't mean to be flippant! If you really are concerned, then Post Office as bumbling said. I would strongly suggest you obtain independent financial advice to ensure a) your soon to be ex-partner doesn't get his hands on it and b) to maximise your tax free allowances c) to ensure that your children are secure should anything happen to you.

choogirl - no worries, you've given some good advice here. You are quite right about the ratings being a bit dodgy - they don't seem to tally with what the market reports are saying.

And I really would looove a sportscar - if only I could find one with built-in moses basket