No buildings insurance - will I get a mortgage on my new home?

socks63

I bought my first home about 4 years ago. I’ve had an offer accepted on a new house, and I’d like to stay with my current mortgage lender as I’m in a five year fixed term deal. 

My problem is that it was a term of my original mortgage offer to have buildings insurance in place. I never took out a policy. I know, I’m an idiot. The only thing I can say is that with all the excitement of moving and all the paperwork I just completely forgot. It’s not something I’ve even thought about the entire time I’ve lived here. Like I said - I’m an idiot!! 

I’ve now taken out a policy but obviously there’s a massive gap in cover. Will this stop the bank from allowing me to pay off the current mortgage and take out a new one? 

I’m completely panicking here because I have no idea how much this could affect getting a formal mortgage offer.  I do have an appointment with one of their advisors tomorrow so I guess I’ll find out then but it would be good to be prepared! 

Flugelhorn

I am not sure that they will know about the gap in cover

DullGreyGuy

socks63 said:

I bought my first home about 4 years ago. I’ve had an offer accepted on a new house, and I’d like to stay with my current mortgage lender as I’m in a five year fixed term deal. 

My problem is that it was a term of my original mortgage offer to have buildings insurance in place. I never took out a policy. I know, I’m an idiot. The only thing I can say is that with all the excitement of moving and all the paperwork I just completely forgot. It’s not something I’ve even thought about the entire time I’ve lived here. Like I said - I’m an idiot!! 

I’ve now taken out a policy but obviously there’s a massive gap in cover. Will this stop the bank from allowing me to pay off the current mortgage and take out a new one? 

I’m completely panicking here because I have no idea how much this could affect getting a formal mortgage offer.  I do have an appointment with one of their advisors tomorrow so I guess I’ll find out then but it would be good to be prepared! 

There is no public registry of home insurance so they can only find out by asking you, assuming it doesn't stipulate that it must be with a particular supplier.

Assuming your house hasn't burnt down before the new policy came into effect then it's a breach of contract but they have suffered no financial loss... they had a risk they didnt want but it didnt crystallise. 

This is mainly going to be a case of dont do it again. 

elsien

It’s a condition so that their equity is protected if something happens. As nothing has happened they won’t have a clue whether you were insured or not. They will only care that you are insured now.

MWT

... and keep in mind with your new purchase you should have buildings cover in place from the date of exchange, not just from completion...

Archergirl

I can't see how they would check but you are so lucky, please don't make the same mistake again. 

ACG

It wont be a problem. They wont know, they wont ask. 

socks63

Thank you to everyone that replied, this puts my mind at ease. I’ll never make this mistake again!