We should have a switcher code for mortgages

Sarenco said:
I'm not sure whether you had a chance to read the entire thread but tommyryan explained the problem he was having assigning an interest in a block policy very well and SBarrett also acknowledged the potential problem in a later post on the same thread.
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I take it this is relating to House Cover rather than life cover. The mortgage provider does not take an assignment of the Fire Policy it merely has it's interest noted. This is not possible with block policies as the management company owns the policy. Protocol can not get around this!

"Nor do I but a lender should be completely neutral as to whether they receive a new policy or an assignment of an existing policy as long as the cover is sufficient."
Yes of course and I would have thought that this is already self evident. Why would any lender have a requirement other than this?
 
Sarenco said:
I'm not sure whether you had a chance to read the entire thread but tommyryan explained the problem he was having assigning an interest in a block policy very well and SBarrett also acknowledged the potential problem in a later post on the same thread.
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I did read it.

A block policy appears to be very rarely used these days. It would not be appropriate to develop a protocol to cover for such rare cases.

tommyryan took out his mortgage in 2013. In the vast majority of cases, he could take out a new policy now for the same price.

Brendan
 
Brendan Burgess said:
It would not be appropriate to develop a protocol to cover for such rare cases.
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I don't have any idea how rare these group policies are but I don't see why you wouldn't want to try and address all potential disincentives or blocks to switching in framing a code.

The practicalities of the switching process should be straightforward and the procedures should be consistent. As things stand, the process is needlessly ad hoc and off-putting.

If Italian borrowers can switch mortgage provider with minimal effort within a 30 day window, why can't we?
 
44brendan said:
I take it this is relating to House Cover rather than life cover. The mortgage provider does not take an assignment of the Fire Policy it merely has it's interest noted. This is not possible with block policies as the management company owns the policy. Protocol can not get around this!
Click to expand...

No, it's a mortgage protection policy organised on a group (or "block") basis. There is absolutely no reason why this couldn't be dealt with in a code.
 
OK,

I don't think that a switcher code is necessary, but I was not aware of the block policy or the fact that the majority of solicitors are incompetent or slow.

Would someone like to start a separate thread with a draft switcher code?

Others will feed into it and we can finalise it and send it to the Minister for Finance.

Brendan
 
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