mortgage lenders Insurance

evosy1978

Hello all

I just wondered if all mortgage lenders do their own buildings insurance. (accord mortgages in particular).

Because our new house has a history of subsidence, something there evaluation picked up in their report. I take it because they know about it and still think the house is acceptable for a mortgage, then this means they will insure us??
Is this correct?

Chris_Knight

Most lenders have arrangements to provide Buildings insurance. Just because they will offer a mortgage doesn't mean that they will accept the insurance risk. If there is a history of subsidence it will undoubtly be referred to their insurer.

Beware often lenders' policies are bad value for money (they receive large commissions). I would personally seek out a specialist insurance broker who will probably be able to find you insurance with better cover, terms & price, or if you are with Accord you may well be using a mortgage broker - they maybe able to point you in the right direction.

Please note that unless you have cover in place prior to purchase then the solicitor is unlikely to allow the mortgage funds to be released so don't delay on this one.

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