Possible remortgage (home insurance)

PerfectOne

quick question, a family member is looking to remortgage his property he wants to know if he needs to have his building insurance in place prior to the remortgage completion?

Senior_Paper_Monitor

Yes before and after !!

Before it is a requirement of the current lender.

After it is the requirement of the new lender.

ExpertAdvice

Absolutely agree with Senior Paper Monitor.

Alot of times, the new lender will confirm with you whether you have home insurance in place before lending.

redlady_1

I would have thought as it is a remortgage he already has buildings insurance??

kingstreet

redlady_1 wrote: »

I would have thought as it is a remortgage he already has buildings insurance??

He should.

nomoneytoday

What would he do if the place burned down?

PerfectOne

Just to confirm there is building insurance in place. The reason I ask is because both the fixed period and expiry date is the same date so he wanted to know if he has to wait a day or two before the insurance expires.

kingstreet

PerfectOne wrote: »

Just to confirm there is building insurance in place. The reason I ask is because both the fixed period and expiry date is the same date so he wanted to know if he has to wait a day or two before the insurance expires.

He should be able to change the house insurance from one company to another outside the completion of the remortgage.

If the current policy expires either before or after the remortgage, he simply needs to ensure the new cover starts on the day the old one ends.

PerfectOne

If however he decides to stay abit longer after his fixed period on the standard rate or commit another 2yr fixed agreement with the same bank, is it ones responsibility to forward the new building insurance to the lender or does the lender request this?

kingstreet

PerfectOne wrote: »

If however he decides to stay abit longer after his fixed period on the standard rate or commit another 2yr fixed agreement with the same bank, is it ones responsibility to forward the new building insurance to the lender or does the lender request this?

Mostly, lenders take it on trust that you're insured.

Some insurers ask for details of interested parties and account numbers of lenders and note their details on the policy. They may inform the lender of the new cover.

From time to time, you may be asked to provide evidence for a routine check. I've lived here six years and had two lenders and neither has asked me for evidence, other than at the point of application for the mortgage.