Reply to: Is your money safe?

[expat]

national savings

Oh, the guys who did the Post War Credits?

[Bagpuss]

Those who had Northern Rock loans didn't get a free house, but that was a special case, they owe the government and were transfered to uncompetitive deals.

If people try to default, the mortgage indemnity premium that the mortgagee took out on behalf of the bank would refund the administrator/liquidator/bank purchaser and the insurance company would then seek the outstanding amount from the mortgagee.

[Jubber]

More importantly (though irrelevant to most people here, I know), what happens to your mortgage if the bank you have it with goes tits up?

The debt would be sold on - just like any other debt that you have. A mortgage is a sodding great loan/debt just like any other loan/debt, and the best bit is, when your house can only fetch two thirds of what you owe, you'll still owe them all of it. Fun huh

[TykeMerc]

May be it means one wouldn't have to repay the mortgage and one could have the house for free

Mortgages are tradable assets (yes I know some aren't really assets especially the sub primes) so they would be sold on by the liquidators to meet the companies liabilities. They could conceivably be called in but that wouldn't be worth it since only a tiny minority of mortgagees could repay in one hit.

[dang65]

May be it means one wouldn't have to repay the mortgage and one could have the house for free

The people with mortgages should just have to switch their payments to the people with savings/business accounts. But somehow I don't suppose it would work like that. Instead, the people with savings would lose the lot, and the people with mortgages would be repossessed. The actual cash would never be seen again.

[SandyDown]

Sorry babe , but there is only one thing one can have for free and this is not a house.

What is it then?? a free car?? free meal?? go on tell us

[Likely]

May be it means one wouldn't have to repay the mortgage and one could have the house for free

Sorry babe , but there is only one thing one can have for free and this is not a house.

[SandyDown]

More importantly (though irrelevant to most people here, I know), what happens to your mortgage if the bank you have it with goes tits up?

May be it means one wouldn't have to repay the mortgage and one could have the house for free

[SandyDown]

Yep, but how are these immune from the current crisis?

If one chooses to trade with their money, there is an associated risk, the question is how risky you want to go....

I doubt many high earners are just keeping their money into gauranteed returns (very low risk ) I would think most are investing in various businesses/properties etc...

[Bob Dalek]

More importantly (though irrelevant to most people here, I know), what happens to your mortgage if the bank you have it with goes tits up?

Buy a shotgun and go down with both barrels blazing when the bailiffs turn up. Take a few of 'em with you, that's my advice.

[dang65]

More importantly (though irrelevant to most people here, I know), what happens to your mortgage if the bank you have it with goes tits up?

[ContractIn]

ever heard of Private Wealth Management ?!

Yep, but how are these immune from the current crisis?

[badger7579]

Anybody know the legal position for business bank accounts? I know the government guarantees the first 35£k for personal accounts but what protection do you get on a business bank account. If my business bank goes tits up what happens to cash in the account??

ok so back to the question in hand...

[bobhope]

Oh-oh

just had a thought. Hargreaves Lansdown hold their sipp pension client money with HBOS.

I can't be the only one here who has a load in cash with them.........

Anyone know anything about this?

googling now.

[SandyDown]

Where are people who have large 6 figures savings, even 7 figure sums keeping their money? I would be papping myself with the current crisis and only being protected for 35k.

ever heard of Private Wealth Management ?!