Mortgage Lenders and Buildings Insurance

[SimonV8ster]

Whilst I was trying to get to sleep last night I was wondering whether mortgage lenders check to see if a property has annual buildings insurance ?

If a property burnt to the ground and wasn't insured obviously the owners would lose everything but also a very good chance that they wouldn't be able to pay back the loan, so the mortgage company would also lose.

It would be in their interest to check wouldn't it ?

[4lf4-155]

SimonV8ster said:

Whilst I was trying to get to sleep last night I was wondering whether mortgage lenders check to see if a property has annual buildings insurance ?

If a property burnt to the ground and wasn't insured obviously the owners would lose everything but also a very good chance that they wouldn't be able to pay back the loan, so the mortgage company would also lose.

It would be in their interest to check wouldn't it ?

They don't check but its normally a condition of the mortgage to have adequate insurance.

[CypherP]

4lf4-155 said:

They don't check but its normally a condition of the mortgage to have adequate insurance.

This. We're currently buying at the moment and the lenders stipulate the need to provide confirmation of insurance prior to completion, to prove you have sufficient cover.