mortgage lender want named on buildings insurance policy!

ferox666

In my mortgage application i've had to sign declaration that I will insure the property (of course - no problem) and will arrange for the lender's interested in the property to be noted on the insurance policy.

I've tried a couple of insurance quotes online and none gave me the option to name a lender on polixy (although i did say "mortgaged") - and have just called one of them to see if i can add note that lender has interest in property; they said they have a firm-policy of not naming lenders on insurance policy and that i'm no longer legally required to do this. Problem is i've signed an agreement saying I will and don't want to risk losing the mortgage.

Help??

edited to add - as rules have apparently abolished this (see below) does anyone know any insurers still offering this service?

tasticz

this also happened to my parents we are with Lloyds, what they did was rang them after we bought the policy and told them the mortgage provider name they said they would add and send the fax to the mortgage provider

after a few weeks we received a letter from our mortgage provider saying thank you..

basically just ring the company and tell them the mortgage provider has asked to be named on the policy and they also want a copy

your insurer will sort all this out usually

dunstonh

; they said they have a firm-policy of not naming lenders on insurance policy and that i'm no longer legally required to do this.

It was never a legal requirement. Law never came into it. It was a lender's preference and they could insist on it.

If your lender insists on it then pick a provider that does it.

ferox666

dunstonh wrote: »

It was never a legal requirement. Law never came into it. It was a lender's preference and they could insist on it.

If your lender insists on it then pick a provider that does it.

Thanks for reply.

According to this it has been abolished very recently http://www.dmhstallard.com/site/library/legalnews/noting_of_an_interest_no_longer_option_for_lenders so perhaps no insurance provider will offer it. I've tried 3 now.... ;(...perhaps lender just using outdated form...

ferox666

tasticz wrote: »

this also happened to my parents we are with Lloyds, what they did was rang them after we bought the policy and told them the mortgage provider name they said they would add and send the fax to the mortgage provider

after a few weeks we received a letter from our mortgage provider saying thank you..

basically just ring the company and tell them the mortgage provider has asked to be named on the policy and they also want a copy

your insurer will sort all this out usually

thanks, but the insurance company said they CANT add name of lender...very confusing as I thought they would be able to just add a note.

rs65

ferox666 wrote: »

edited to add - as rules have apparently abolished this (see below) does anyone know any insurers still offering this service?

I would tackle it the other way round and get the lender to confirm that they no longer need their interest noted.

dunstonh

ferox666 wrote: »

Thanks for reply.

According to this it has been abolished very recently http://www.dmhstallard.com/site/library/legalnews/noting_of_an_interest_no_longer_option_for_lenders so perhaps no insurance provider will offer it. I've tried 3 now.... ;(...perhaps lender just using outdated form...

Thanks for the link. I didnt realise they had formally ended the requirement (although it wasnt a law )

kingstreet

That deals with notes of interest. New one on me too, although the insurers we use allow us to add lender details on the application, so it's not a big issue for brokers...

What about the lenders who ask to be joint policyholder?

jonesMUFCforever

IMO they don't want to become joint policyholders.
All they want is their interest noted on the policy so should you cancel or not pay the premiums they can safeguard their interest should a claim arise.
They will give you x number of days to prove that you have a new buildings policy in force (they won't give a hoot about contents)or purchase one on your behalf and charge it to the mortgage.

kingstreet

jonesMUFCforever wrote: »

IMO they don't want to become joint policyholders

There are lenders who have requested to be joint policyholder for as long as I can remember. Others, as you say, who ask for their interest to be noted.

jonesMUFCforever

kingstreet wrote: »

There are lenders who have requested to be joint policyholder for as long as I can remember. Others, as you say, who ask for their interest to be noted.

I have never heard of this but I bow to your greater knowledge on this matter.