New Mortgage and Insurance

fergie_

I'm hoping someone can help me as I'm having a bit of a disagreement with my mortgage broker (who has been very good up until this point).

I'm going to be buying a new house with my gf which means selling my own and then taking out a joint mortgage with the Halifax. Mortgage has all been approved etc.

Broker, trying to be helpful, provided me with some 'bespoke' buildings and contents quotes that came to £600. Having 10 years no claims I ran some myself and got a figure of £200 for identical cover.

They are now telling me the policy HAS to be in joint names and I won't be able to use my 10 years no claims.

I've had a good look through the Halifax conditions:

static.halifax.co.uk/assets/pdf/mortgages/pdf/Halifax_Mortgage_Conditions.pdf

The only bits I can see are:

If the insurance company allows you to, you must have it insured in our joint names, and if that is not possible you must arrange for our interest in your property to be noted on the insurance policy.
• The policy must be suitable to cover your property so that if something happens to it, the money from a claim will pay to allow it to be put back to how it was before.


5) Insurance

It shall be an obligation on the debtor:

(a) to insure the security subjects or, at the option of the creditor, to permit the creditor to insure the security subjects in the names of the creditor and the debtor to the extent of the market value thereof against the risk of fire and other such risks as the creditor may reasonably require;

TBH Its there first time I've seen the documents insist the bank's interest is recorded. The policies usually simply ask if you have a mortgage or not.

So who is right? Do I have to take out a joint policy or can it just be in my own personal name (one half of the borrowers) and ask the insurer to simply note the bank's interest? Where do I stand with my 10 years no claims?

If its any help, I'm in Scotland.

rs65

I think there are crossed wires here.

You are looking at terms regarding the Halifax being joint insured and he is talking about you and girlfriend being joint names.

The terms talk about the insurance being in the name of the debtor which will be both of you.

I think the policy should be in the name of you and girlfriend with Halifax's interest noted in respect of buildings.

You really want her to be joint insured as debtor and also as owner of some contents. Why not take it out in your name with Halifax noted and using your NCB and then add girlfriend the next day (if your chosen insurer won't allow you to use your NCB in joint names from day one).