Mortgage App said building to get to cover before they are ok mortgage . normal? [proof of id] [own insurance]

Q:We have been reccommended a mortgage through our broker, which we have agreed to. We were sent the paperwork to complete and send back (with etc etc…) and on one page it relates to home insurance. It says that a charge may apply if we get our which they will have to approve, rather than use their recommended insurance. Is this normal, or is it a way of them making sure you take insurance through them?

Do we have to have buildings and contents cover set up BEFORE they will offer us the mortgage? what if they decline the mortgage after we take out cover?

What order should we be doing things Im a little confused. Our solicitor only works part time (mornings) which dosnt help!

Any advice appreciated

Thanks


A:The point is you don't have to take insurance out through your lender, but they will want to know it is in place before they release your funds. So you tell them whether or not you want to insure through them. You may be able to get a better deal elsewhere. You do not need buildings and contents insurance before they offer the mortgage. You will need buildings insurance in place when you exchange contracts. The lender may want to see a copy of the building insurance schedule, but your solicitor will let you know. Hope this helps

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