You’ve found the perfect property and your offer has been accepted, so you’ve applied for your mortgage, issued a survey and instructed your solicitor. Then the worst happens, the sale falls through, and you’ve already paid hundreds, maybe even thousands in fees.
Home Buyer’s Insurance covers you against these losses, reimbursing your expenses up to the amount of £2,250:
- Conveyancing & search fees up to £1,500
- Survey & valuation fees up to £500
- Mortgage arrangement fees up to £250
It’s a one-off payment, and you could be covered in seconds.
Why could your purchase fall through?
- Gazumping – someone else comes in with an offer £1,000 greater, than the offer previously accepted by the seller from you.
- The seller changes their mind and takes the property off the market
- The mortgage lender valuation is lower than the accepted offer
- The survey identifies major repair work that no one was aware of
What doesn't the policy cover?
The policy does have some exclusions, with the main ones being listed below. A full list of exclusions can be found in the policy wording which can be found here (Policy Wording).
The policy does not cover costs and expenses;
- They are incurred prior to the start date of the policy
- If you are aware of a previous survey of the property which may lead to a claim
- If you decide to withdraw from the purchase of the property (unless the reason is covered by the policy, such as being made redundant)
- If a claim arises because of a deliberate act by you
- If they can be reclaimed from or refunded by another party
- If the property is purchased at auction.
- Purchases where there will be shared ownership or shared equity.
- Purchases where you share the financial interest in the property, other than with a joint legal owner or the first mortgage provider.