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Right to buy bank insisting on buying life insurance through them!
Mandychard
Posts: 21 Forumite
My neighbours are currently going through the right to buy process. They have been told by the bank giving them the mortgage that they must buy thier life insurance to protect the councils position.
I can understand the requirement to have life insurance for that purpose but I was under the impression it's illegal for banks to insist that it be their product can someone please confirm?
I can understand the requirement to have life insurance for that purpose but I was under the impression it's illegal for banks to insist that it be their product can someone please confirm?
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Comments
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Ask them to show you where it says it in the paperwork, the bank might just be saying it to try and hit their sales target. I dont think its compulsory.I am a Mortgage AdviserYou 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.0
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Thanks ACG would the relevant paperwork be from the council or the bank?0
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I suppose it would be the council.
Or give them a call.I am a Mortgage AdviserYou 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.0 -
It'd be the bank, when gettign a mortgage, you must have life insurance to cover the mortgage. The product is upto you as long as it covers the cost and the criteria.
The bank are probably upselling their own product, but also it's worth checking if there are specific terms and conditions0 -
Should perhaps, not must.It'd be the bank, when gettign a mortgage, you must have life insurance to cover the mortgage. The product is upto you as long as it covers the cost and the criteria.
The bank are probably upselling their own product, but also it's worth checking if there are specific terms and conditions
There is no requirement for someone to have life cover. A person who is single with no dependents may have no demonstrable need for life cover if they have no-one to whom they would wish to leave the unencumbered property.
For those who have a need, it's their decision whether they choose to address it.
I suspect there is nothing in the "S125" RTB Offer to suggest life cover is a requirement and the lender should be told to take the proverbial extended perambulation from the end of the limited Victorian seaside attraction.
If cover is desired, the purchaser should be free to purchase from whoever and wherever they choose...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.0 -
Sorry you're right, if you dont wish to leave the estate to anyone, then you do not. I guess my use of 'must' was slightly strong.0
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