What would happen to people's mortgages if a bank was to go bust

The money is paid monthly to the ''note holder''. All the banks could close but as long as someone held that mortgage ''note the money has to be paid or the homeowner loses the house to the noteholder. No banks needed..

In simple terms the mortgage would transfer to the new owner as it is the ownership of the bank which changes hands. It might only complicate itself if terms of transfer give grounds for review or the mortgage itself is non-transferable (which is unlikely) and then would be subject to legal argument.

Same thing that happened to all the mortgage company loans when the mortgage companies closed. The loans are sold to another mortgage company or bank and you continue to pay. They cannot change any of the terms of your original loan.

I was told that if the bank goes bust altogether, no rescue deal or nationalisation, or anything, then your mortgage gets wiped out - as there is no longer a company to pay the mortgage to.

Banks normally go bust because they owe people money. Your mortgage is an asset they own. This would be sold by administrators to another bank to pay the bust banks debts. You still have to pay the mortgage, nobody could take your house as long as you keep paying.

You keep making mortgage payments and show proof of payments. You would be notified of who would be taking over your mortage.