What happens to mortgage if lender goes bust?

[windo77]

It may be unlikely but if my mortgage provider (Permanent TSB) were to go out of business, what wouyld happen to my mortgage?

Thanks

 

[enoxy]

I think the mortgage would have to be paid back straight away leaving many people unable to do this and thus vulnerable to losing their houses. Let's hope it doesn't come to this....

 

[Brendan Burgess]

Your mortgage would not be affected by it.

You would still have to make the same repayments over the same term.

If you were on a Standard Variable Rate, it might become more expensive.

Brendan

 

[windo77]

Thanks for the reply. But if my current mortgage provider were to go bankrupt without being merged, taken over, etc., who would I be making my repayments to?

Your mortgage would not be affected by it.

You would still have to make the same repayments over the same term.

If you were on a Standard Variable Rate, it might become more expensive.

Brendan

 

[davidoco]

For example EBS would have raised money for further lending by mortgage-backed securitisation so in effect your EBS mortgage is owned by somebody else who would no doubt arrange a direct debit for you.

 

[Sherman]

Thanks for the reply. But if my current mortgage provider were to go bankrupt without being merged, taken over, etc., who would I be making my repayments to?

The liquidator most likely.