Remortgage Life Cover

Seaniemulvihill said:

Hi. Remortgaging currently, and original lender has sent deeds to solicitor minus the life policy which they are retaining until the loan is paid.

However new lender won’t release funds without policy, or “copy original” of same. Have contacted assurance company and they have sent a “copy policy” which the new lender is not accepting.

Policy is in force, etc., but how do we bridge the gap? Do we need another policy or to cancel the one with original lender & reissue new one to remortgage lender?

Thanks

Click to expand...

As your existing lender won't release their interest in your policy until the mortgage is cleared, this usually leaves two options:

1. The new lender accepts an undertaking that you will transfer the existing policy, once the existing mortgage has been cleared with the old lender (assuming there is sufficient coverage on it, both in terms of €€ and time)
2. You have to take out a new policy for the new mortgage, and cancel the old one, once the old mortgage has been cleared

Consumers shouldn't be forced to take out new policies when changing lenders, it's a barrier to change.

Click to expand...