Mortgage status if Bank goes under?

[roadrunner]

In circumstance where a bank was to go belly up - what would be the status of the morgtage holder? Would all amount need to be cleared ASAP.

 

[plant43]

Your mortgage would be sold onto a different bank, more than likely. You would still make the same repayments and have the same terms, I think.

 

[Lobby]

I imagine the other bank however would "buy" the mortgage from the failed bank for a reduced fee, say, 80c on the euro.

Is there a case for applying yourself to the receiver and buying your own mortgage? Has this happened in other countries?

I can see how the receiver would find it more attractive to bulk sell all mortgages rather than deal with thousands of individuals.

 

[MikeL]

Is there a case for applying yourself to the receiver and buying your own mortgage? Has this happened in other countries?

Brilliant idea! I would love to buy back mine at 60 c to the Euro

 

[Samie1]

One other thing (that scared us when we heard it)
If you also happen to have your current accounts in the same bank as your mortgage then what they would do is add it all up.
All your current accounts are put against your mortgage and the "balance" is what you are left with !!
This was the case prior to the Government stepping in to "prop up" the banks.