hi2u_uk Posted June 28, 2013 Share Posted June 28, 2013 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 ? Quote Link to comment Share on other sites More sharing options...
montesquieu Posted June 29, 2013 Share Posted June 29, 2013 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. Quote Link to comment Share on other sites More sharing options...
xela57 Posted June 29, 2013 Share Posted June 29, 2013 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. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.