Newspaper article The Journal (Newcastle, England)
Mortgage Lenders Insist on Insurance; Finance Expert David Wilson Answers Some of the Most Frequently-Asked Mortgage Questions
DO I need to take out insurance if I'm taking out a mortgage? Buildings insurance will be a formal requirement of your mortgage lender to cover, as a minimum, the reinstatement costs of the building in which they have an interest. Maintaining this cover throughout the term is important and is often a condition of the mortgage. It also advisable, but not a formal requirement, to have contents insurance in place and most policies can include both buildings and contents.
In addition to insuring your property, you will be offered other insurances - for example, life and critical illness. These are not mandatory requirements but are strongly recommended if you have a family or partner where your income goes towards the cost of the mortgage or household. Insurances of this type can pay out a lump sum to protect from unforeseen events such as death or contracting a critical illness.
When looking for insurance it is always advisable to seek independent advice to ensure you not only get the insurance that fits your circumstance but also at the best possible price.
Can my mortgage include stamp duty and what are the thresholds? Stamp duty land tax is payable on property transactions in the UK. The tax payable is dependent on the value of the property transaction. When you are considering buying, it is worth knowing which threshold you fall into.
A mortgage lender will not provide a mortgage to pay for the stamp duty associated with your property purchase.
Stamp duty is not payable on properties purchased up to pounds 125,000 (pounds 250,000 for first-time buyers). …