Have I voided my mortgage offer?

Alexiskitty

Hi All,
In the terms of my mortgage offer, it says I am required to get home insurance on the day of exchange. I didn't know this as I have a mortgage advisor who ran through the terms with us and didn't really point that out to us. To cut a long story short, I got insurance to begin on the day we complete, and exchange happened 3 days ago (Fri 14th). I'm almost certain we won't be able to go backward and insure the property starting 3 days ago. Have I totally cocked everything up? Will they not give us our mortgage?

Thanks in advance for all advice

Edi81

You should be fine but if anything happens to the property prior to completion you are uninsured.

Best contact your insurance company and change it.

Flugelhorn

Don't think you can retrospectively get insurance but how about sorting it this morning?

Don't think it will affect the mortgage and hopefully the property didn't burn down over the weekend

Alexiskitty

After being up all night stressing about it I've just had a text from the mortgage provider that funds will be released on Thursday.

Lokolo

Alexiskitty wrote: »

After being up all night stressing about it I've just had a text from the mortgage provider that funds will be released on Thursday.

If the property burns down, you will still owe the money and have no property. You are currently uninsured. So get it insured for TODAY.

Niv

Alexiskitty wrote: »

After being up all night stressing about it I've just had a text from the mortgage provider that funds will be released on Thursday.

But still, sort your insurance today!

chalky_white_2

Your Lender will actually require you to insure the Property from the day of completion, which is when its interest in the Property (the secured mortgage) materialises.

However, you should insure it from exchange of contracts, which is when your interest in the Property is created. Lender's advise you to insure from exchange because it would be negligent to tell you otherwise.

You should amend your insurance to begin ASAP to protect yourself. If the Property should burn down, you will be liable to complete the Purchase. Your Lender will pull out (because there is a material change in circumstances) and you will not have insurance to protect you.

But do not panic, it is an easy fix.

davidmcn

chalky_white wrote: »

If the Property should burn down, you will be liable to complete the Purchase. Your Lender will pull out (because there is a material change in circumstances) and you will not have insurance to protect you.

I've never really understood how having buildings insurance will help you - the insurers are hardly likely to settle a claim quickly, so you'd be in default anyway, surely?

G_M

davidmcn wrote: »

I've never really understood how having buildings insurance will help you - the insurers are hardly likely to settle a claim quickly, so you'd be in default anyway, surely?

Yes but at least you'll be able to Complete the purchase of your pile of ashes at a later stage, You'll owe the seller his costs for late Completion, but you will be able to Complete!


OP - did you do the conveyancing yourself or use a solicitor? Did your solicitor also act for te mortgage lender?


Your solicitor should have ensured you got insurance in plce at Exchange. Naughty solicitor!


Insure the property today. Now.

davidmcn

G_M wrote: »

Yes but at least you'll be able to Complete the purchase of your pile of ashes at a later stage, You'll owe the seller his costs for late Completion, but you will be able to Complete!

Not if the seller has already stomped off in a huff with your deposit and remarketed (or decided to rebuild themselves).

Alexiskitty

Thank you all so much for your advice!! I have changed the insurance so it will be starting today. :money: