FSCS Temporary high balances
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- Lemon Pip
- Posts: 75
- Joined: November 6th, 2016, 8:42 am
FSCS Temporary high balances
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).
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).
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- Lemon Quarter
- Posts: 1734
- Joined: November 4th, 2016, 9:40 am
Re: FSCS Temporary high balances
You’re buying before you’ve sold. How would that lead to a high balance?
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- Lemon Slice
- Posts: 851
- Joined: November 7th, 2016, 4:21 pm
Re: FSCS Temporary high balances
he will be buying a bigger house! perhapsGrahamPlatt wrote:You’re buying before you’ve sold. How would that lead to a high balance?
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- The full Lemon
- Posts: 15021
- Joined: October 10th, 2017, 11:33 am
Re: FSCS Temporary high balances
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
Dod
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- Lemon Pip
- Posts: 75
- Joined: November 6th, 2016, 8:42 am
Re: FSCS Temporary high balances
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.
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.
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- The full Lemon
- Posts: 15021
- Joined: October 10th, 2017, 11:33 am
Re: FSCS Temporary high balances
Good for you. I wish I had that problem. I really cannot help but I am sure others will.
Dod
Dod
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- Lemon Half
- Posts: 7479
- Joined: November 4th, 2016, 6:11 pm
Re: FSCS Temporary high balances
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.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.
Scott.
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- Lemon Pip
- Posts: 75
- Joined: November 6th, 2016, 8:42 am
Re: FSCS Temporary high balances
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.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.
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- Lemon Quarter
- Posts: 4130
- Joined: November 4th, 2016, 10:15 am
Re: FSCS Temporary high balances
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 wrote: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.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.
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- Lemon Pip
- Posts: 75
- Joined: November 6th, 2016, 8:42 am
Re: FSCS Temporary high balances
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.
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.
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- Lemon Slice
- Posts: 851
- Joined: November 7th, 2016, 4:21 pm
Re: FSCS Temporary high balances
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
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