I'm not sure where to ask this but I'm looking to find out some more info before I make any calls for speciifcs. The situation is that I have some cash and I have a mortgage from a re-financing several months ago. Given the current financial meltdown, I'm pondering my options to spread the risk and minimise any possible losses. I obviously don't want to keep any more than 35k in any single company. I guess that its complicated in that I am resident at the moment outwith Europe.

If I kept the cash, for which I have no immediate use for at the moment due to a change of plans, with the same company I have the mortgage with, in the event of failure is it a simple case that I would only be liable for the difference between the assets and liabilities with that company. Where can I go for more details on this possibility? It seems an ideal situation to have the assets with the same company holding the liabilities. Any ideas welcome.

PS If I pay the cash back I will have early payback penalties, the cash may be useful if my plans change and there are tax benefits to having debt as the property is currently rented out (to a family member for a nominal rent).