Hello Everyone
I am currently in the process of buying a new build and there is a hitch regarding the mortgage.The new build is at first floor stage,there will be a roof payment stage payment and the house should be ready in 6 months.
When I went to drawdown the mortgage my bank (NIB) hit me with a condition that I wasnt aware of and was not in the letter of offer.The condition is that NIB need confirmation that the builder has public liability insurance.
I knew it was a condition that I would need insurance for fire,flooding & storm,but this extra condition surprised me and my solicitor.My solicitor is saying that she has not come accross this before and is also saying that the builder's solicitor hasnt come accross this.The builder is saying it is none of the banks business if he has or not (he is just playing hard ball I guess).The builder's solicitor is saying they do not want to set a precedent by giving this (per my solicitor).
I could go with another bank but this would delay the process and would be more expensive(NIB's tracker is the lowest in the market).I have threatened to go to another bank.If I was to get public liability ins it would cost over 3k!!My attitude is either the builder(this is the most straight forward solution) or bank have to give way.
Has anyone seen this condition before (do other banks request it)? Also,how was it dealt with?
Thanks in advance
I am currently in the process of buying a new build and there is a hitch regarding the mortgage.The new build is at first floor stage,there will be a roof payment stage payment and the house should be ready in 6 months.
When I went to drawdown the mortgage my bank (NIB) hit me with a condition that I wasnt aware of and was not in the letter of offer.The condition is that NIB need confirmation that the builder has public liability insurance.
I knew it was a condition that I would need insurance for fire,flooding & storm,but this extra condition surprised me and my solicitor.My solicitor is saying that she has not come accross this before and is also saying that the builder's solicitor hasnt come accross this.The builder is saying it is none of the banks business if he has or not (he is just playing hard ball I guess).The builder's solicitor is saying they do not want to set a precedent by giving this (per my solicitor).
I could go with another bank but this would delay the process and would be more expensive(NIB's tracker is the lowest in the market).I have threatened to go to another bank.If I was to get public liability ins it would cost over 3k!!My attitude is either the builder(this is the most straight forward solution) or bank have to give way.
Has anyone seen this condition before (do other banks request it)? Also,how was it dealt with?
Thanks in advance