FSCS temp high limit on funds accumulated for a house move?
Discussion
Does anyone know if funds you're accumulating in one institution for a transfer to the solicitor (can't do them separately, see Skipton Building Society who won't let you transfer to anyone but your own accounts elsewhere), in order to combine with the proceeds from the sale of a primary residence, for the purchase of a new primary residence (don't own other houses), are covered by temporary high limit protection?
Normally I wouldn't worry, but because our silly buyer still hasn't exchanged, but seemingly we're aiming for next Thursday to complete, the money needs to move now ready for a big CHAPS Tuesday next week from the institution who'll do it, and already has a chunk of the money sat.
BUT, if we don't exchange or complete in the coming week, the money is going to be sitting around in an account well over the joint account FSCS limit, and also without a technical 'exchanged' property lined up.
That's even if this kind of financial concern is covered by temporary high limits.
Technically they cover buying a primary residence, but it's not clear if that means buying one while selling another, or just buying a brand new primary residence.
Also due to AML and all that jazz, I don't want to start sending the money via multiple other institutions as my solicitor might start getting a bit funny.
Normally I wouldn't worry, but because our silly buyer still hasn't exchanged, but seemingly we're aiming for next Thursday to complete, the money needs to move now ready for a big CHAPS Tuesday next week from the institution who'll do it, and already has a chunk of the money sat.
BUT, if we don't exchange or complete in the coming week, the money is going to be sitting around in an account well over the joint account FSCS limit, and also without a technical 'exchanged' property lined up.
That's even if this kind of financial concern is covered by temporary high limits.
Technically they cover buying a primary residence, but it's not clear if that means buying one while selling another, or just buying a brand new primary residence.
Also due to AML and all that jazz, I don't want to start sending the money via multiple other institutions as my solicitor might start getting a bit funny.
I really don’t have the time.
We have two high street banks abs they’ve both caused us last minute headaches with access with large sums before, or needing extra checks to do updates like biometrics so she can send larger sums in the app. But still not enough iirc.
The only alt was booking a visit in branch.
My wife recently was locked out of hsbc for getting a code wrong and had to make an appointment in branch to sort out.
These are options I’d ‘test’ but I really don’t want to find out with funds needed in a few working days and for which there is currently a very simple documented AML trail the solicitor is happy with.
I’d prefer to just know if accumulated funds for my needs are covered or not.
We have two high street banks abs they’ve both caused us last minute headaches with access with large sums before, or needing extra checks to do updates like biometrics so she can send larger sums in the app. But still not enough iirc.
The only alt was booking a visit in branch.
My wife recently was locked out of hsbc for getting a code wrong and had to make an appointment in branch to sort out.
These are options I’d ‘test’ but I really don’t want to find out with funds needed in a few working days and for which there is currently a very simple documented AML trail the solicitor is happy with.
I’d prefer to just know if accumulated funds for my needs are covered or not.
Mr Whippy said:
I’d prefer to just know if accumulated funds for my needs are covered or not.
"To prove you've held a temporary high balance, we may ask for evidence which could include (but not be limited to) the following:"A property sale receipt or agreement.
"A letter from a lawyer, conveyancer, mortgage provider, former employer, or pension trustees.
"Land register and HMRC records.
"This list isn't exhaustive and the evidence we need will depend on your individual circumstances."
https://www.fscs.org.uk/making-a-claim/claims-proc...
Panamax said:
"To prove you've held a temporary high balance, we may ask for evidence which could include (but not be limited to) the following:
"A property sale receipt or agreement.
"A letter from a lawyer, conveyancer, mortgage provider, former employer, or pension trustees.
"Land register and HMRC records.
"This list isn't exhaustive and the evidence we need will depend on your individual circumstances."
https://www.fscs.org.uk/making-a-claim/claims-proc...
Yeah I’d read that."A property sale receipt or agreement.
"A letter from a lawyer, conveyancer, mortgage provider, former employer, or pension trustees.
"Land register and HMRC records.
"This list isn't exhaustive and the evidence we need will depend on your individual circumstances."
https://www.fscs.org.uk/making-a-claim/claims-proc...
Technically it is a “temporary” high balance.
Technically it’s for upgrading to the next primary residence.
But technically they don’t say that’s covered
Imagine being in that situation and worrying about arbitrary rules being applied.
Yes low chance of happening between now and Tuesday, and then it not being covered, and then government not stepping in to cover it any way to help retain confidence in system.
But then confidence in the system to begin with is a function of knowing the protection you think is there actually is there.
In this case I’ve no idea.
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