What happens if (bank question)....

[Hodders]

We have a mortgage with an offset savings account. Bank in question is the Abbey (owned by Santander)

If the bank were to collapse what happens ?

Is it:

a) Mortgage balance becomes asset (which the liquidators will use to pay off debts). Savings balance protected by "100% of first £35k" FSA law.

b) Balance difference becomes asset (mortgage minus savings).

c) Governed by Spanish law ?

If "a" then we would stand to lose several years of savings, blood sweat and tears. If "b" then I'm more chilled. "C" don't have a clue !

 

[englishpremier]

The savings would pay off some of the mortgage and the remander being an asset AFAIK

 

[Sarduk]

A bank or money handler cannot operate in the UK without being a registered UK financial institution, so they all have to adhere to UK laws and financial regulations. Hence why we have PayPal UK, and not just PayPal (Inc.), and why we had Lehmans UK as well as Lehmans in the US, and so on.

Ask Abbey, because:

a) We're not Abbey advisors or representatives

b) We are not financial experts

c) You will get people here (and elsewhere) falsely claiming to be an expert in whatever it is you're asking about, who could potentially give you disastrously wrong advice

d) It is not like Abbey will say; "omg how could you ask such a thing, my feelings are so hurt, we're not going to collapse " ...