WARNING: Post office/Bank of Ireland Mortgage - cannot complete

yorkshire_spam

As I'm sure you know lenders insist that you have adequate building insurance before you drawn down and complete a mortgage.

Bank of Ireland impose an additional condition on the insurer - they must notify the lender if the building policy lapses or is cancelled.

I can't find a UK insurer that will meet that condition.

Interestingly this means that post office mortgages CANNOT use post office Home insurance. Brilliant!

AVIVA, NFU and Post office checked so far.
almost 2 hours on hold to Direct Line and Zurich ... no answer from them yet.

I'm beginning to wonder if it's actually POSSIBLE to meet the criteria of a Post Office mortgage?!
:mad:

GMS

To save time speak to a broker who would be able o find an insurer for you quickly.

yorkshire_spam

GMS wrote: »

To save time speak to a broker who would be able o find an insurer for you quickly.

Post office website recommends post office home insurance to meet the requirements of your mortgage - but it doesn't!!!!

loubel

Lots of lenders have this requirement so I'm surprised you're having such difficulty. Perhaps the people you're talking to don't understand?

orangina

ask your solicitor if they have acted for BOI before and who those clients used for B&C - have you called the lender to ask them who is acceptable??

yorkshire_spam

orangina wrote: »

ask your solicitor if they have acted for BOI before and who those clients used for B&C - have you called the lender to ask them who is acceptable??

Solicitors have reviewed their cases and can't find a previous case where this condition was required.

Lender does not have a list of any acceptable insurers and will not discuss insurers for fear of accidentally recommending somebody.

yorkshire_spam

loubel wrote: »

Lots of lenders have this requirement so I'm surprised you're having such difficulty. Perhaps the people you're talking to don't understand?

In each case the person I've spoken to has refered the matter to a supervisor and has come back with the answer that they won't meet that requirement.

yorkshire_spam

Just spoken to a local broker - he is not aware of a single insurer that will meet this requirement.

beecher2

And it is definitely the insurer who has to contact the lender, rather than the person with the mortgage?

loubel

If that's the case then there will be a lot of people unwittingly not meeting their lender's insurance requirements, in which case presumably the lenders don't actually check/care so long as their interest is noted on the policy...

yorkshire_spam

loubel wrote: »

If that's the case then there will be a lot of people unwittingly not meeting their lender's insurance requirements, in which case presumably the lenders don't actually check/care so long as their interest is noted on the policy...

BOI impose 2 criteria:
1) The insurer must note the lender's interest
2) The insurer must inform the lender in the case that the policy lapses or is cancelled.

My solicitor is of the opinion the when the letter to check these matters is sent to a large insurer they sign it off without checking the details, whereas if you ask them the explicit question or you try to use a diligent insurer they will tell you they will not meet criteria 2.