buildings insurance

wayne1972

i had a letter from my mortgage company saying they needed a copy of my buildings insurance schedule for there records. isent them a copy by return post but they have returned it saying.

"unfortunately, we are unable to update our records as our financial in the property is not noted,please contact your insurers and request they issue an ammended schedule noting our interest"

if i fail to comply they will sort my insurance and charge me, if i get my insurance schedule changed i will get charged a ammendment fee. i have checked all the original paper work for my mortgage and it does not state anywhere that i should have the mortgage companies financial interest on my building insurance it only states i must have valid insurance.


so the question is where do i stand?

TEDDYRUKSPIN

First things first! What is your mortgage company?

Second, although they are asking you to do is add the mortgage company name on the building insurance. This will not cost you anything.

Third, who is your building insurance company with?

Fourth, they can't force you to buy their building insurance!

wayne1972

my mortgage is with advantage (morgan stanley) and my buildings insurance with direct line, i contacted direct line regarding a new ammended schedule and they told me there was a charge of £26. i have never come across a mortgage lender that states its name is on the insurance policy. maybe i should just pay direct line but i have my heals well and truly dug in and i'm not bowing down. when i originally took the mortgage out my credit rating was poor (thats why i used advantage), my credit rating is now very good so i will be changing my mortgage in august when i come to the end of my tied in period(can't leave early silly exit fees) but i am stuck with advantage till then

payless

Most lenders say their interest should be noted ( or even in joint names - its often on the offer letter and./or t&cs) but they don't all follow it up

payless

Direct Line- youn pays your money and takes your choice ... my insurer does not charge for such amendments , but may have been a bit more at outset

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just had a thought - UK Govt owns 70% of RBS ( who I believe own DL and many other insurers)

Uk Govt controls the firm that insurers a high % of houses and car
UK Govt to " insurer " toxic debt of the banks

Gasket

Have you explained to Direct Line that you will be cancelling the policy if they do not waive their admin charge, because if your mortgage provider issue buildings cover for you, you will have to cancel the direct line policy as you cannot have duel insurance.

They may prefer to waiver the fee rather than loose your business especially if you have any other policies with them.

wayne1972

cheers gasket had not thought of that one