Lender wants to be joint policyholder on building insurance - which insurer?

hcb42

just call the insurer and ask them to note them as joint policyholder. They do this every day!

Rollinghills

hcb42 wrote: »

just call the insurer and ask them to note them as joint policyholder. They do this every day!

Which insurer to you recommend then who does that?

I don't think they do. The ones I called nearly laughed at me. They note lender's interest but a joint policy holder is normally a husband or wife or another adult residing at the property. A person not a bank!

As kingstreet's post shows I think this is some kind of a mistake. Our solicitor thinks so too. We have now bought standard insurance with Nationwide's interest noted and solicitor is happy with that. I'm glad it's sorted but I'm not happy that we've been given some obsolete and confusing instructions.

davidmcn

kingstreet wrote: »

No mention of either joint cover, or lender interest to be noted.

Their interest does at least require to be noted, according to the CML Handbook for Nationwide:

6.14 Insurance
6.14.1 You must make reasonable enquiries to satisfy yourself that buildings insurance has been arranged for the property from no later than completion.

You should remind the borrower that they:

• Must have buildings insurance in accordance with the requirements of the mortgage contract no later than completion, and
• Must maintain such buildings insurance throughout the mortgage term

6.14.1 Does the lender have any further requirements in relation to buildings insurance?
Where we do not arrange insurance you must ensure:

• our minimum insurance requirements as documented in section 9 of the Mortgage Offer are met. Submission of the Certificate of Title will be taken as confirmation that all risks are covered. Only omissions should be reported to the Issuing Office. We do not require a copy of the policy.
• the maximum excess is £1000 (if a flat a £1000 per unit is acceptable)

We require our interest in the policy to be noted.

If the total sum insured is less than the total number of flats multiplied by the amount set out in the mortgage offer, we will accept the situation if you obtain written confirmation from the insurance company, management company or Landlord concerned that they have assessed the level of cover for the block as completely adequate.

For leasehold properties where there are more than 6 flats in the block the Landlord must arrange insurance. If there are 6 or fewer flats in the block and the Landlord does not arrange insurance the borrower must have Contingent Fire Indemnity cover

Still no mention of joint names, unless it's an odd mortgage condition. Googling brings up somebody else querying this clause back in October.

amnblog

Having checked our last three Nationwide offers I can see no similar clauses.

This will be miscommunication.

Put this on your solicitors toe. It is down to them to ensure you have the correct insurance arrangements.

kingstreet

davidmcn wrote: »

Their interest does at least require to be noted, according to the CML Handbook for Nationwide:

Still no mention of joint names, unless it's an odd mortgage condition. Googling brings up somebody else querying this clause back in October.

Yeah, the CML requirement would have been communicated by solicitor but the OP says it's on their offer which differs with any other offer two of us have found.

Odd.

Rollinghills

Thanks Amnblog & Kingstreet, I'm sure this is a mistake, and a very annoying one. Not a miscommunication as it is written in black & white in our mortgage offer.

I asked the solicitor whether he could clarify with Nationwide but he told me just to note their interest. I suppose he doesn't want to raise this issue with them in case we end up in another loophole of bureaucracy where nobody wants to take any responsibility for anything!

Hoping to exchange on Monday.

I will be writing a letter of complaint to Nationwide due to other issues. But not sure I should mention this in case they find that we have not fully complied with the mortgage offer! What do you think, should I query it or let sleeping dogs lie?

amnblog

Let your solicitor deal with it and advise you. It's his job.