Southsea Mortgage and Investment bank shut down

Closed sign

The Southsea Mortgage and Investment Company has been shut down by the industry regulator.

The Financial Services Authority closed the Portsmouth-based bank after it struggled to wind down its business following economic pressures.

The bank had just over 250 depositors and retail deposits of £7.4 million when it was closed.


The Bank of England said the closure "follows a deterioration in the bank's financial position as a result of management decisions and the firm's specific business model".

Savers will receive a payout from the Financial Services Compensation Scheme (FSCS), which protects deposits up to £85,000. The FSCS intends to make its payouts as quickly as possible. 

Retail depositors needn't contact the FSCS as they will be contacted in due course. In the meantime, further details about payouts can be found at or by calling the FSCS on 0800 678 1100.

Depositors who are not covered by the FSCS or who have savings above £85,000 will be able to claim for what they are owed by calling the insolvency liquidator, BDO, on 020 7486 5888.

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So there you have it. Big banks = Bailed out. Small banks = Not bailed out.

According to BANK LEAGUE TABLES "Southsea" was the smallest capitalised bank of all the UK incorporated banks at just £2.5 million as at 31st March 2009. However its capital / assets ratio (22.10%) put it in the top 40 of the UK's 154 banks, likewise its gearing (3.52:1).

What are the lessons for the future? If you have more than £85,000 on deposit, split it up between the 154 banks. And if you have more than £13 million (154 x £85,000)? Buy some gold.

Only up to £85,000. Those who had more than this sum deposited will only reecive £85,000.