Pre-Mortgage requirement: Home Insurance & Mortgage protection/Life Assurance

blueredface

Hi there,

I made an offer for asking price which has been accepted & process started.
Survey has been completed from my side and told bank who said valuation has also been completed. I’m not sure if Bank need to visit the property physically but none of bank official has visited the property but has been told it has been done.

Since, I need more than half of property value in cash (loan from my family and savings) which is being in process to transfer into my account could take a week or two. Once I have all of the required cash money transferred then Bank will offer their loan.

Bank told me I need to have Home Insurance and mortgage protection before loan is offered.

I'm little bit confused and my question is nobody is sure about possession/key of property until you have it in your hand when both myself & current owner sign the contract.
Since, this property is still in possession of current owner, can I still get home insurance and mortgage protection even I'm still in limbo if I will definitely get this house. Can a quote be enough or I have to have both Home insurance and mortgage protection intact beforehand when I have to pay the first instalment for insurance & mortgage protection while I'm getting these policies?

Also, in worst case scenario, if things do not go well or deal is not signed, do I have to incur the initial charges / cancellation charges for both mortgage protection & home insurance?

Please advice.
Thanks.

Flatzie_poo

blueredface wrote: »

Hi there,

I made an offer for asking price which has been accepted & process started.
Survey has been completed from my side and told bank who said valuation has also been completed. I’m not sure if Bank need to visit the property physically but none of bank official has visited the property but has been told it has been done.

Since, I need more than half of property value in cash (loan from my family and savings) which is being in process to transfer into my account could take a week or two. Once I have all of the required cash money transferred then Bank will offer their loan.

Bank told me I need to have Home Insurance and mortgage protection before loan is offered.

I'm little bit confused and my question is nobody is sure about possession/key of property until you have it in your hand when both myself & current owner sign the contract.
Since, this property is still in possession of current owner, can I still get home insurance and mortgage protection even I'm still in limbo if I will definitely get this house. Can a quote be enough or I have to have both Home insurance and mortgage protection intact beforehand when I have to pay the first instalment for insurance & mortgage protection while I'm getting these policies?

Also, in worst case scenario, if things do not go well or deal is not signed, do I have to incur the initial charges / cancellation charges for both mortgage protection & home insurance?

Please advice.
Thanks.

You can have it all in order, and can pick a start date - which you confirm/can amend when you organize a draw-down date.

Your bank will be happy with that.

You wont be charged until you draw-down, hence incurring no fees if this falls though.

Best of luck in the new house.

wenbo

Most of the mortgage providers also provide life cover and home insurance. If you buy from the same provider, these products will be linked to the mortgage. The life cover will start once draw down. This is the most convenient way, but price may not be better.