Donate to Remove ads

Got a credit card? use our Credit Card & Finance Calculators

Thanks to johnstevens77,Bhoddhisatva,scotia,Anonymous,Cornytiv34, for Donating to support the site

FSCS Temporary high balances

Discussing offers, rates and deals on suppliers
smokey01
Lemon Pip
Posts: 94
Joined: November 6th, 2016, 8:42 am
Has thanked: 4 times
Been thanked: 15 times

FSCS Temporary high balances

#416155

Postby smokey01 » May 30th, 2021, 5:33 am

Hi,

I am in the process of buying a house that will complete before my house sale. I see that the FSCS has a ‘Temporary high balances‘ protection. The house I am buying will become my main residence. I presume therefore that I will be covered as I plan to put £150,000 in about 3 savings accounts ready for transferring to my current account at the appropriate time?

From the FSCS website:

Certain life events could have caused a temporary high balance in your bank account, including:

Real estate transactions (property purchase, sale proceeds, equity release - relating to your main residence only. This does not have to be a UK property but must relate to your main residence).

GrahamPlatt
Lemon Quarter
Posts: 2059
Joined: November 4th, 2016, 9:40 am
Has thanked: 1032 times
Been thanked: 824 times

Re: FSCS Temporary high balances

#416160

Postby GrahamPlatt » May 30th, 2021, 7:50 am

You’re buying before you’ve sold. How would that lead to a high balance?

mutantpoodle
Lemon Quarter
Posts: 1007
Joined: November 7th, 2016, 4:21 pm
Has thanked: 509 times
Been thanked: 122 times

Re: FSCS Temporary high balances

#416161

Postby mutantpoodle » May 30th, 2021, 8:00 am

GrahamPlatt wrote:You’re buying before you’ve sold. How would that lead to a high balance?


he will be buying a bigger house! perhaps

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: FSCS Temporary high balances

#416163

Postby Dod101 » May 30th, 2021, 8:17 am

Buying before selling can often to lead to a bridging loan. I know; I have done it a couple of times. If he is buying a bigger house that could lead to a bigger bridging loan. If he has the cash to buy before he has sold he is presumably well off and will be aware of the problem. There is something we do not know!

Dod

smokey01
Lemon Pip
Posts: 94
Joined: November 6th, 2016, 8:42 am
Has thanked: 4 times
Been thanked: 15 times

Re: FSCS Temporary high balances

#416164

Postby smokey01 » May 30th, 2021, 8:18 am

Hi,

I am paying cash for the second house, approx £425,000. So I need to get the funds into various instant access savings accounts ready for transferring to my current account at the appropriate time to send to my solicitor.

Dod101
The full Lemon
Posts: 16629
Joined: October 10th, 2017, 11:33 am
Has thanked: 4343 times
Been thanked: 7534 times

Re: FSCS Temporary high balances

#416168

Postby Dod101 » May 30th, 2021, 8:38 am

Good for you. I wish I had that problem. I really cannot help but I am sure others will.

Dod

swill453
Lemon Half
Posts: 7962
Joined: November 4th, 2016, 6:11 pm
Has thanked: 984 times
Been thanked: 3643 times

Re: FSCS Temporary high balances

#416169

Postby swill453 » May 30th, 2021, 8:45 am

smokey01 wrote:I am paying cash for the second house, approx £425,000. So I need to get the funds into various instant access savings accounts ready for transferring to my current account at the appropriate time to send to my solicitor.

Surely the point of the FSCS protection you're talking about is that you don't need to put the money in multiple accounts. If it's all in one account it's covered.

Scott.

smokey01
Lemon Pip
Posts: 94
Joined: November 6th, 2016, 8:42 am
Has thanked: 4 times
Been thanked: 15 times

Re: FSCS Temporary high balances

#416171

Postby smokey01 » May 30th, 2021, 9:02 am

swill453 wrote:Surely the point of the FSCS protection you're talking about is that you don't need to put the money in multiple accounts. If it's all in one account it's covered.

Scott.


I am only doing that because each of the accounts only allows £50,000 to be transferred out per day, so I only need 3 days to get all money into my current account.

scrumpyjack
Lemon Quarter
Posts: 4814
Joined: November 4th, 2016, 10:15 am
Has thanked: 606 times
Been thanked: 2675 times

Re: FSCS Temporary high balances

#416174

Postby scrumpyjack » May 30th, 2021, 9:08 am

smokey01 wrote:
swill453 wrote:Surely the point of the FSCS protection you're talking about is that you don't need to put the money in multiple accounts. If it's all in one account it's covered.

Scott.


I am only doing that because each of the accounts only allows £50,000 to be transferred out per day, so I only need 3 days to get all money into my current account.


I have had no problem moving larger amounts out of my Marcus Account (Goldman Sachs). If you call your bank and explain you will need to move a larger amount I'm sure they will oblige. It must happen all the time.

smokey01
Lemon Pip
Posts: 94
Joined: November 6th, 2016, 8:42 am
Has thanked: 4 times
Been thanked: 15 times

Re: FSCS Temporary high balances

#416849

Postby smokey01 » June 2nd, 2021, 3:36 pm

Hi,

I’ve confirmed with the FSCS via webchat that money deposited for the purpose of a house purchase is covered by the ‘temporary high balance’ rule. So I don’t have to fear that my life savings will be wiped out if the unthinkable happens. One less thing to worry about.

mutantpoodle
Lemon Quarter
Posts: 1007
Joined: November 7th, 2016, 4:21 pm
Has thanked: 509 times
Been thanked: 122 times

Re: FSCS Temporary high balances

#416961

Postby mutantpoodle » June 3rd, 2021, 7:57 am

when I did this we simply told the solicitor that I would pay him in installments
and full amount would be in place at due date
he gave me the relevant account details (my acct with his dealing)
all was fine


Return to “Bank Accounts Savings & ISAs”

Who is online

Users browsing this forum: No registered users and 10 guests