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We Will Give You A Mortgage But We Will Take Out Insurance

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i have just received a letter offering me the full requested mortgage i want however i am very curious about a sentence that says that the amount they are lending me is above their above lending limits therefore they (the lender) are taking out insurance. Is this a normal sentence in a mortgage offer ?

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i have just received a letter offering me the full requested mortgage i want however i am very curious about a sentence that says that the amount they are lending me is above their above lending limits therefore they (the lender) are taking out insurance. Is this a normal sentence in a mortgage offer ?

I got that too though there wasn't any suggestion it was above their lending limits, just that they were going to insure the loan on their own behalf at no cost to me. Some kind of replacement for the mortgage indemnity insurance that used to be common.

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i have just received a letter offering me the full requested mortgage i want however i am very curious about a sentence that says that the amount they are lending me is above their above lending limits therefore they (the lender) are taking out insurance. Is this a normal sentence in a mortgage offer ?

I found this info:

http://www.cml.org.uk/cml/consumers/guides/indemnity

Reading that it would seem that the mortgage provider would have to tell you about the insurance as should things go wrong the insurance company may persue you for any shortfall.

The above link explains "subrogation" which is why the insurance company might (if things go wrong) get involved.

No doubt your Solicitor will explain that to you.

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  • 244 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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