Lender Insisting they are noted on Buildings Insurance

sammy1235

Good Morning

My mortgage lender has insisted that they are noted as an interested party on my buildings insurance. Can they do this?

I have had the same mortgage for 10 years plus and to my shame had lazily always had my insurance via them, but with the help of this site I realised my costly error.

I had my new policy approved and verbal confirmation of cancellation of my old policy given by my lender. But now the lender has written insisting that they are noted as an interested party.

The new Insurer I selected does not do this. I have now passed the date of free cancellation mainly because of my Lender choosing to respond to the emails I was asked to send to them via letter.

I have gone through my mortgage policy and cannot see any reference to them requiring this. Conditions appear to just be that they must approve the policy and I must have one.

Can they now add this additional condition?

Thank you

kingstreet

It's normal for a lender to require its interest noted. This is the only way it will;-

find out if you stop paying the premiums
stop you disappearing off to Brazil with the policy proceeds leaving a smoking heap of embers where its security used to stand.

The aggregator brigade of insurers intent on the rush to the top in terms of cost, to the bottom in terms of quality, don't want to do things like this. It means additional work.

They want the low hanging fruit of easy business they can put in force on the day of quoting.