EBS buy to let home insurance issue

i have a buy to let property with a preferential home loan mortgage rate on it with EBS. When i took out the mortgage 12 yrs ago the EBS broker let me have a home loan rate as opposed to a buy to let rate although the broker was well aware that the property was for letting. I did not request a home loan rate, it was offered to me as i already has a mortgage on my ppr with EBS.

I have just received a letter, sent to my buy to let address, from EBS stating that if i do not provide details of my home insurance to them in the next 14 days they will proceed to arrange cover on my behalf..

I hold landlord insurance on the property, however i do not want to show this as i am sure they will then up my interest rate from the current variable home loan rate of 4.58 to 5.35 which is the buy to let rate.
The rent i am getting falls well short of covering the mortgage as it is so this would only add to my problems.I am currently paying them mortgage plus life insurance on the property.

I would love some advice on how i should now handle this situation with EBS?
I am only after coming off a fixed 3 yr rate where my mortgage payments came down slightly,so i do not need another rise. Can EBS legally go ahead and arrange home insurance on my behalf, WITHOUT MY PERMISSION?
Any advice appreciated.

I'd a similar situation with Danske bank. I just sent them a copy of insurance ensuring that page mentioned nothing about the house been rented. Didn't hear anything else from them. Tick box exercise. I know someone else who didn't bother sending anything back and they followed up a couple of times but then dropped it.
In relation to them taking out the house insurance. Whilst I'm not an expert on the legal side of this I reckon they would be able to. You need to have an "Insurable Interest" in the property been insured. In this case they have the mortgage registered against it so from that side they'd be entitled to. I'm pretty sure your mortgage contract has it somewhere that they can do it as well. I'd try not to sweat it too much though....

thanks for that lucozade.

i was thinking of maybe taking out household insurance on the property, getting a copy of schedule and then cancelling within 14 days? would this work?

i have a buy to let property with a preferential home loan mortgage rate on it with EBS. When i took out the mortgage 12 yrs ago the EBS broker let me have a home loan rate as opposed to a buy to let rate although the broker was well aware that the property was for letting. I did not request a home loan rate, it was offered to me as i already has a mortgage on my ppr with EBS.

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What does your contract say?

If it says you are being given a home loan rate and they knew you had another home anyway, I would say you are safe enough.

Just send them in the insurance you have.

Alternatively if you are very worried about it, how much would it cost to take out home insurance? You could either take it out or just let them insure it and pay it.

As lucozade points out, they probably won't follow up on this.

Brendan

Hi again, when I said I ensured that the page from the insurance didn't mention that the house was rented that I sent them I meant that this wording unfortunately didn't make it through the photocopying process........ It happen's sometimes that... Your suggestion would also work I'm sure.. As I said don't sweat it to much.. You'll sort it..

thanks for the replies.
just checking through previous documents. i cant find original contract but i see that they asked for a copy of insurance in back in 2008. i dont recall if i ever sent a copy back to them but my interest rate didnt change.
I might just send offmy current copy and hope for the best!

Up to you but they've asked for you to confirm that you have insurance. I'd answer the question they asked and nothing more...

No. Because when an insurer notes your banks interest ina property they write to Them to inform them of cancellation. Plus you would probably be charged short term rates as it is the first yesr of the policy

Most policies dont state the property is rented on the schedule,.

Does the insurer write to the bank when a policy is taken out or just when it's cancelled?

If they only write to them when it's cancelled and your current policy schedule states that the property is let, it could be worth taking a new policy out with two different companies, waiting for the schedules of both and cancelling whichever ones schedule looks like it could cause most bother with the bank.

If neither new schedule state that it's let, you could just cancel the more expensive one or the one that offers poorer coverage.

If the companies write to the bank when you take insurance out, this may cause bother - so it might be worth doing this without noting the banks interest on the policy and adding their interest when you decide which one to keep.


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Hse Insurance LTV %

Would it be worth checking to see what % of loan to value you have or were given.
Perhaps the interest rate may be lower.
Worth a check.