Mortgage requirements, house insurance

[Guest]

hi my daughter is in the process of buying her first home. It’s a new house , and is waiting to see if her mortgage is going to be approved. She is being told by her financial advisor to buy some building and contents insurance now but still does not have the go ahead on the loan, is this right? We understand she will need it to go ahead with the loan once approved but she feels she is being pushed into this too early.

[Kati]

tagging des8 Diana M

[jaguarsuk]

Hi, I used to be a tied financial adviser including selling mortgages.

I assume she has an agreement in principle and that she's at the survey stage if the loan hasn't had final approval?

Also, she will be required to have Buildings insurance as a term of the loan, but doesn't have to have contents if she doesn't want it. The bank don't care about what's in the house it's the structure they want insuring.

It would be usual to set up insurance as soon as there is a proposed date for exchange of contracts, otherwise how does she know what date to tell the insurer she wants cover from?

If the loan hasn't been approved and exchange of contracts date agreed then she doesn't need to be taking Buildings insurance out yet.

[des8]

She doesn't need insurance until contracts are exchanged, so as jaguarsuk get the insurance in place with "date to be advised" .
When the date is known Bob's your uncle.