Bluestone Mortgages

jamiebuyer

So are we and they asked us to do exactly the same xxx

lhollingworth89

jamiebuyer said:

So are we and they asked us to do exactly the same xxx

That’s good to know! Xx

MovingForwards

lhollingworth89 said:

jamiebuyer said:

So are we and they asked us to do exactly the same xxx

That’s good to know! Xx

Yes, it's normal and you have to keep adding them each year if you change insurer as they have the right to ask for proof. Easy enough to do and you'll have to provide proof to your solicitor.

lhollingworth89

Yes it was the solicitor who asked us on their behalf, it’s all sorted I just wondered what the reason is for it

jamiebuyer

When do bluestone normally ask to do a pre-completion phone call? We are meant to be completing 20th and nobody has phoned us yet 🤷🏼‍♀️

MovingForwards

lhollingworth89 said:

Yes it was the solicitor who asked us on their behalf, it’s all sorted I just wondered what the reason is for it

The reason is to ensure the asset their money's secured on will repay them if something should happen.  Aside from the initial confirmation, they've not yet asked to see any subsequent policies.

Years ago mainstream lenders used to ask for proof too, now it's just in the T&C's about naming them and the customer has to produce it if asked.

lhollingworth89

MovingForwards said:

lhollingworth89 said:

Yes it was the solicitor who asked us on their behalf, it’s all sorted I just wondered what the reason is for it

The reason is to ensure the asset their money's secured on will repay them if something should happen.  Aside from the initial confirmation, they've not yet asked to see any subsequent policies.

Years ago mainstream lenders used to ask for proof too, now it's just in the T&C's about naming them and the customer has to produce it if asked.

But then what happens to us? Say if the worst happened, bluestone would be paid off but we would have no money to repair? Does that make sense?

MovingForwards

lhollingworth89 said:

MovingForwards said:

lhollingworth89 said:

Yes it was the solicitor who asked us on their behalf, it’s all sorted I just wondered what the reason is for it

The reason is to ensure the asset their money's secured on will repay them if something should happen.  Aside from the initial confirmation, they've not yet asked to see any subsequent policies.

Years ago mainstream lenders used to ask for proof too, now it's just in the T&C's about naming them and the customer has to produce it if asked.

But then what happens to us? Say if the worst happened, bluestone would be paid off but we would have no money to repair? Does that make sense?

Assuming it's totally worst case eg flattened:

Option 1 - bluestone keep their mortgage on the new build and you carry on as normal.

Option 2 - take your equity and start over.

I'll be honest and say I've never thought that far with worst case scenario planning as it's very rare. I've planned round the more likely things eg loss of job, health declining further and reducing hours etc.

If it's a fire and the shell is fine. The insurance company repairs the property, you move into an alternative property while it's being fixed and move back into a sparkling new interior.

Stop stressing and plan for the more likely things eg get your keys and start saving an emergency fund while enjoying your new home 😊 

lhollingworth89

Thanks. We have life and critical insurance too. We already live in our home as it’s a right to buy but it’s still so exciting

MovingForwards

Of course it's exciting and you don't have the stress of packing / moving. The novelty hasn't worn off for me 😄