Two clients were referred to me by one of our mortgage brokers, Steven Boyde, who had recently arranged their financing. The clients were living remotely in Scotland but wanted to purchase some London property for investment purposes. Whilst they were in the middle of the purchasing two buy to lets in South-East London their mortgage broker realised they may not be adequately covered for this transaction and referred them to me for buy to let protection services.
After going through their existing insurance policies in the consultation stage I realised that their current coverage was no longer relevant to their needs. It was both cumbersome and inappropriate and the term did not tie in with their mortgages. They had also been sold some subsidiary buy to let protection service products which they did not need and I advised them to cull these as they were an unnecessary expense.
Both of the clients were from an older demographic and for this reason I needed to find an insurer that was comfortable with some non-standard responses to health questions.
After discussing the clients’ situation with an insurer they agreed to a 15 year liability, this links exactly with the expected mortgage term.
The buy to let protection services policies were set up as separate policies and offered £150,000 for both, over 15 years. They were retaining one existing policy and as they anticipated reducing the total debt over the next few years, they were very happy to have set up coverage which presented a 100% suitable solution for their requirements.
The assurance was written in trust and the clients required a Guaranteed Insurability Option (GIO) which we looked into. As there were some medical disclosures, we worked closely with the Insurer and their Underwriters to achieve the best premium and quality of cover. This involved a ‘switch’ of Insurer following underwrite, as a result of premium loading by our 1st choice.
The clients were delighted with the solution and now propose to buy a residential home, using our mortgage services.
We will also be referring the clients to our Will writing business associates for estate and tax planning.