RussBoy

Hope someone can please help:

I live in Spain now but for the sake of answering this question, please assume I am living in the UK still as I'm hoping EU Human Rights come into play here...

I am applying for a small Mortgage and have been giving the decision in principle. The lender, Barclays in Spain, wants me to take out their life insurance to cover my half of the liability (very small amount of around £50k or less). Problem is, I'm a diabetic and they have given me a questionnaire to get my quack to fill in. Since living in Spain for 2 years I haven't been to a docs as I haven't need one, and I buy all my prescriptions over the counter (insulin etc.). I was unsure at first if we'd stay and now I am I intend registering at some point anyway...after I've found a home that I can commit to living in.

Therefore, I'm unable to get a GP over here to give the info, and even if I registered today, there's a host of tests that would need doing etc. which would take several weeks.

My question: are Barclays legally able to a/insist on any form of life insurance to cover my part of the mortgage and b/ insist on that insurance being their insurance? Sounds a bit iffy to me? I do actually have some UK based insurance from before I was diagnosed as being diabetic and this alone covers more than 2 thirds the required sum.

Many thanks,


Russ

fast bloke

Barclays don't insist that you have life cover. Send the questionnaire to your old doc, and sent the underwriters a letter detailing any treatment you have been using for the last two years. They wouldn't usually delay completion on a mortgage while waiting on underwriting.

(p.s. - A lender can insist on insurance and sometimes this is part of the deal offered)

Brendan Hughes

a) I think yes, but b) I think no - might be wrong but ISTR Barclays saying they'd prefer me to take their life ***. but could accept another equivalent. Hardly EU human rights, more health/competition laws

If you have the decision in principle, why do you need the results so quickly? Put a term in your promissory contract that says "subject to mortgage approval" so you don't lose your deposit and that buys you time.

RussBoy

Thanks guys, so sort of good and bad.

The house purchase has been a bit of a nightmare as it's a looney woman selling. Over here we have to put down 10% at an early stage and obviously we won't do that until such time we know a mortgage will be forthcoming. We have added in a clause saying subject to mortgage approval and valuation anyway but the seller won't take off the market until the 10% is paid...Bit of a catch 22.

And yep, I meant health discrimination

Cheers,


R

fast bloke

If you are really stuck with it, get a policy from the Spanish equivalent of Tesco, don't mention any illnesses (it will be underwritten straight away) and cancel it immediately after completion.

(p.s. - It will be a completely worthless policy as they will never pay out due to non disclosure, but as Barclays don't require that life policies are assigned, they will never know that it has been cancelled anyway)

RussBoy

Not a bad idea...Good man, and thanks.


R

David Lock

Just remember not to die in the meantime

The Snug Rhino

Is that a standard para from your suitability letter templates?

RussBoy

It'd be just my bloody luck!


R

fast bloke

No - The standard paragraph says life cover is a legal requirement and if they shop around for it I will be forced to kill them immediately.

(TBTH, it sounds like a sales person is being a bit frugal with the truth if they say that taking their life cover for one of their mortgages is a legal requirement. They are basically saying that once you have had a heart attack you can never get another mortgage with them? If they want to bend the rules, why not bend them back)

Brendan Hughes

It shouldn't be. If you make it clear it's subject to mortgage approval, and you don't get that approval, you should simply get your 10% back?

john banks

I have no idea about your human rights, but if you've done nothing about it then you'll still be registered with your UK GP and they can fill in details for your insurer. Specific questionnaires regarding diabetes will usually uncover the dates of your last diabetic assessment and the data collected at that point.

On a separate point, it is worth getting blood & urine tests (not just home dipstix testing), blood pressure, eye and foot screening done annually. Your old GP surgery will probably have been sending for you at your last known address I would think.

RussBoy

I did things by the book when I left...I told my GP and the revenue in order to settle tax affairs and transfer national insurance over etc. To be honest, my treatment in the UK was really poor anyway...hospital visits (6 monthly) had been canceled 4 times in a row and my GP knew less about the illness than I do which is really why I try and keep a close check on myself now I'm in Spain (I check my own blood pressure, bloods etc and have private eye tests).

Re Brenden's point: we actually have 2 deposits to pay. A 3k deposit to the agent first (i.e. next few days) and then the 10% stage minus the 3k when private contracts are agreed, normally in 2 to 3 weeks. The agent has a VERY bad reputation for claiming deposit funds and then not refunding when a deal falls through (even when a mortgage issue) and won't allow amendment to their standard 'reservation' contract which, unsigned keeps the property on the market. This is in fact our 2nd agreed offer on same property as agent tried blackmailing us a month back into signing contract in their shop without allowing me to first show my brief by saying another 'cash buyer' was on his way to shop now to pay the deposit and first one there with cash gets it. I naturally told him to **** off, but having looked at over a dozen other properties since, there is absolutely no doubt this is the one for us so it would be a case of biting noses and spiteing faces if we pursued another...

Flatcapdriver

Russ, in Spain they are entitled to ask you to sign their life assurance policy as Spanish banks use this as collateral on the mortgage as they see the house as 'their' property and need to securitise it. Usually, these policies can be paid off in two years unless you have a silly mortgage - certainly mine was paid off in that time period for a much larger sum.

They may also sting you for insurance of around €400 per annum for the above reasons and generally won't listen to you when you explain you have arranged your own cover - again, because they feel the need to securitise their investment.

RussBoy

Thanks FCD, very valuable info. I'm thinking I may ask if Barclays can approach their underwriters asking if a private examination in Spain at my cost and notes from my British GP 2 years ago will suffice. I wouldn't mind, but I've never even had so much as a cold in all these years and our borowing requirement is very small...