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  • FIRST POST
    • abillybob94
    • By abillybob94 12th Oct 16, 12:57 PM
    • 25Posts
    • 3Thanks
    abillybob94
    Nationwide asking us to include them in insurance
    • #1
    • 12th Oct 16, 12:57 PM
    Nationwide asking us to include them in insurance 12th Oct 16 at 12:57 PM
    Hey Peeps!

    So in a clause of our Mortgage offer it states we need to include interest to the Mortgage Lender (Nationwide) in the Home Insurance policy.

    We have taken out insurance with Admiral after calling Admiral on the Monday they said it was standard practice to include a clause in their insurance that states interest for the mortgage lender also. So Tuesday comes and we buy the insurance... Surprise, Surprise the mortgage lender isn't mentioned in any of the documents or even the small print.

    Contacted Admiral today via email and they have stated a law was passed in 2012 meaning they legally can't add Nationwide's name to the policy or mention that the mortgage lender retains any interest in the policy and that they're sorry.

    I've contacted a couple other insurers such as Lloyds etc and they also all say the same. So what are we supposed to do? We have just exchanged and will be completing next week and our solicitor has asked for proof that we have included Nationwide in our insurance otherwise he can't sign them off. We're really starting to panic as we don't know where else to turn!

    Any help guys would be most appreciated!!!!
Page 1
    • davidmcn
    • By davidmcn 12th Oct 16, 1:15 PM
    • 3,835 Posts
    • 3,411 Thanks
    davidmcn
    • #2
    • 12th Oct 16, 1:15 PM
    • #2
    • 12th Oct 16, 1:15 PM
    Tell your solicitor to tell Nationwide what you've told us - I'm sure it won't be the first time customers have pointed out that they're asking the (near) impossible.
    • kingstreet
    • By kingstreet 12th Oct 16, 1:25 PM
    • 30,008 Posts
    • 15,954 Thanks
    kingstreet
    • #3
    • 12th Oct 16, 1:25 PM
    • #3
    • 12th Oct 16, 1:25 PM
    A law was passed my great white ****.

    The ABI agreement with the banking industry ended, that's all. Plenty of insurers are happy to add lender interest. It's only the flog it quick and cheap brigade from comparison sites who seem to have a problem with this.

    As an example, our L&G quote system allows us to enter lender name and account number when producing illustrations and issuing cover confirmation which meets the CML Handbook requirement solicitors need.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • HouseBuyer77
    • By HouseBuyer77 12th Oct 16, 1:37 PM
    • 755 Posts
    • 712 Thanks
    HouseBuyer77
    • #4
    • 12th Oct 16, 1:37 PM
    • #4
    • 12th Oct 16, 1:37 PM
    Both my mortgage lender and freeholder are mentioned as having an interest on my buildings insurance policy (it's leasehold but leaseholders are responsbile for arranging building insurance). This just involved asking my insurance broker to do so.

    May be worth phoning an insurance broker for a quote. They can ensure the interest gets added (explicitly say this is a condition of you taking up the policy).

    Cancel the Admiral policy. Ask for a full refund without administration fee as they gave you false information about the policy.
    • HouseBuyer77
    • By HouseBuyer77 12th Oct 16, 1:39 PM
    • 755 Posts
    • 712 Thanks
    HouseBuyer77
    • #5
    • 12th Oct 16, 1:39 PM
    • #5
    • 12th Oct 16, 1:39 PM
    Oh and as you've exchanged only cancel the old once the new has taken effect!
    • abillybob94
    • By abillybob94 12th Oct 16, 1:51 PM
    • 25 Posts
    • 3 Thanks
    abillybob94
    • #6
    • 12th Oct 16, 1:51 PM
    • #6
    • 12th Oct 16, 1:51 PM
    Thanks peeps so it sounds as if Admiral are just trying to fob us off and lying about the law thing. Can anyone point me to an insurer or give me a name of insurer that they know will definitely name our Mortgage Lenders on the policy?

    It would be a big help!
    • G_M
    • By G_M 12th Oct 16, 1:54 PM
    • 37,004 Posts
    • 40,910 Thanks
    G_M
    • #7
    • 12th Oct 16, 1:54 PM
    • #7
    • 12th Oct 16, 1:54 PM
    1) ask Adniral to quote 'the law' that changed.

    2) refer that law to your solicitor and Nationwide

    Or do as Housebuyer77 sugested.
    • stator
    • By stator 12th Oct 16, 2:27 PM
    • 5,049 Posts
    • 3,210 Thanks
    stator
    • #8
    • 12th Oct 16, 2:27 PM
    • #8
    • 12th Oct 16, 2:27 PM
    Cancel Admiral, take out another policy.
    AXA allow you to note the lender on the insurance documents.
    Changing the world, one sarcastic comment at a time.
    • pinkteapot
    • By pinkteapot 12th Oct 16, 2:29 PM
    • 6,105 Posts
    • 7,819 Thanks
    pinkteapot
    • #9
    • 12th Oct 16, 2:29 PM
    • #9
    • 12th Oct 16, 2:29 PM
    Ironically, we're with Nationwide home insurance and they noted HSBC as our mortgage company on our policy.
    • kingstreet
    • By kingstreet 12th Oct 16, 2:43 PM
    • 30,008 Posts
    • 15,954 Thanks
    kingstreet
    As your solicitor is the one required to ensure you meet your lender's CML Handbook requirement (it's 6.14.2) when insuring the property, ask them for their views of insurers since the end of the ABI/Bankers agreement.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • davidmcn
    • By davidmcn 12th Oct 16, 2:51 PM
    • 3,835 Posts
    • 3,411 Thanks
    davidmcn
    As your solicitor is the one required to ensure you meet your lender's CML Handbook requirement (it's 6.14.2) when insuring the property, ask them for their views of insurers since the end of the ABI/Bankers agreement.
    Originally posted by kingstreet
    The CML Handbook no longer refers to having the lender's interest noted (if you can see 6.14.2 you're looking at an out of date version) - I think the Nationwide is now unusual if it's still asking for it as part of their mortgage conditions.
    • kingstreet
    • By kingstreet 12th Oct 16, 2:59 PM
    • 30,008 Posts
    • 15,954 Thanks
    kingstreet
    The CML Handbook no longer refers to having the lender's interest noted (if you can see 6.14.2 you're looking at an out of date version) - I think the Nationwide is now unusual if it's still asking for it as part of their mortgage conditions.
    Originally posted by davidmcn
    Thanks.

    TBH I was looking at an old file's confirmation letter because I couldn't remember it off the top of my head.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • rtho782
    • By rtho782 12th Oct 16, 3:07 PM
    • 621 Posts
    • 397 Thanks
    rtho782
    We completed May 31st this year, Nationwide is our lender, they didn't ask for this.

    Our insurance company is Admiral as well. Nationwide wanted some stupidly extortionate amount for insurance.
    Deposit Saved since 01/12/15: £13,000 / £15,000 House Bought!

    Debt Cleared since 01/12/15: £6,000 / £7,500
    • FBaby
    • By FBaby 12th Oct 16, 3:58 PM
    • 14,297 Posts
    • 36,414 Thanks
    FBaby
    That was in our conveyancing papers as a requirement. I wrote back saying insurance already in place and wasn't going to change. They said that and it proceeded without problems!
    • Fosterdog
    • By Fosterdog 12th Oct 16, 4:05 PM
    • 2,436 Posts
    • 4,035 Thanks
    Fosterdog
    I've also just taken a mortgage with Nationwide and there was nothing in mine about them being named on the insurance. I've just double checked all of the paperwork and there is no mention of it at all, the only the it says is that we have to have insurance and specified the rebuild value we had to insure for.
    • abillybob94
    • By abillybob94 12th Oct 16, 4:22 PM
    • 25 Posts
    • 3 Thanks
    abillybob94
    Thanks for all your help guys Our house is a brand new house and so we struggled to find a company that would let us manually enter an address because if you're required to enter a post code it won't show our house in the list.

    Surely as we have already exchanged and showed our solicitor all the documents who has just come back and said they're fine then there shouldn't be any issue?
    • Small Yeti
    • By Small Yeti 12th Oct 16, 5:07 PM
    • 41 Posts
    • 73 Thanks
    Small Yeti
    Hi,

    I just thought I would weigh in on this as I'm an insurance professional. There was no such law passed in 2012 (other laws were passed in 2012 but none that had this impact). So long as your lenders have an insurable interest in the property they can be named on the policy. You are definitely being told a load of hokum!

    Definitely let us know what law they are referencing - I will be delighted to enlighten them as to what the law actually covers and point out how they are wrong.

    Enjoy your new house when you move in!
    • e13
    • By e13 12th Oct 16, 8:40 PM
    • 40 Posts
    • 26 Thanks
    e13
    My mortgage is with nationwide and they didn't ask for this. I just sent my "yes you're insured" email to the solicitor and it was fine! Hope all works out!
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