The Lemon Fool

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).

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

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

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

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.

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

Dod

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.

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.

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.

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.

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