Mortgage v Savings question.........

[PHOENIXUK]

Hypothetical question, say you have a mortgage with a bank for 200k and you have savings of 200k with same bank and the bank goes tits up, does one cancel out the other as morally it should, or as I suspect you loose your savings (over the 35/50k)and the mortgage is bought up by another bank and you still owe it??

[scotal]

PHOENIXUK said:

Hypothetical question, say you have a mortgage with a bank for 200k and you have savings of 200k with same bank and the bank goes tits up, does one cancel out the other as morally it should, or as I suspect you loose your savings (over the 35/50k)and the mortgage is bought up by another bank and you still owe it??

For the 3rd time, the two accounts would be netted off, so you would have no mortgage and no savings.

[Pat H]

What sort of a nobber would have a £200k mortgage and £200k of savings in the first place?

[scotal]

Pat H said:

What sort of a nobber would have a £200k mortgage and £200k of savings in the first place?

Its a liqudity thing.

[Pat H]

scotal said:

Pat H said:

What sort of a nobber would have a £200k mortgage and £200k of savings in the first place?

Its a liqudity thing.

Offset morgage, anyone?

[PHOENIXUK]

scotal said:

PHOENIXUK said:

Hypothetical question, say you have a mortgage with a bank for 200k and you have savings of 200k with same bank and the bank goes tits up, does one cancel out the other as morally it should, or as I suspect you loose your savings (over the 35/50k)and the mortgage is bought up by another bank and you still owe it??

For the 3rd time, the two accounts would be netted off, so you would have no mortgage and no savings.

Sorry dont look here very often, didn't realise the q had been asked.

As for the nobber comment by the other poster, think maybe I.F amongst many other reasons.

[scotal]

Pat H said:

scotal said:

Pat H said:

What sort of a nobber would have a £200k mortgage and £200k of savings in the first place?

Its a liqudity thing.

Offset morgage, anyone?

Which would also be netted off in the evnet of the bank collapsing.

[Hoppy2008]

scotal said:

Pat H said:

scotal said:

Pat H said:

What sort of a nobber would have a £200k mortgage and £200k of savings in the first place?

Its a liqudity thing.

Offset morgage, anyone?

Which would also be netted off in the evnet of the bank collapsing.

Scotal.
Pardon my ignorance, but what do you mean by netted off?
Are you saying that if the bank goes bust, the borrower doesnt have to pay up?

[Pat H]

Hoppy2008 said:

Pardon my ignorance, but what do you mean by netted off?
Are you saying that if the bank goes bust, the borrower doesnt have to pay up?

Nope.

He means that you deduct the debt from the savings and the balance is what you have to pay back.

[Hoppy2008]

Pat H said:

Hoppy2008 said:

Pardon my ignorance, but what do you mean by netted off?
Are you saying that if the bank goes bust, the borrower doesnt have to pay up?

Nope.

He means that you deduct the debt from the savings and the balance is what you have to pay back.

aha! Thought it sounded too easy.
Thanks Pat.