How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Alice H Your Own Question
Alice H
Alice H, Solicitor/Partner
Category: Law
Satisfied Customers: 2850
Experience:  Partner in national law firm
30932268
Type Your Law Question Here...
Alice H is online now

Is a building society allowed to advance a mortgage of £123,000

Resolved Question:

Is a building society allowed to advance a mortgage of £123,000 to a couple with no life assurance? The couple were in their 50's and now the husband has died and the wife is left with a mortgage to pay until she is 84!!
Thank you.
Submitted: 2 years ago.
Category: Law
Expert:  Alice H replied 2 years ago.
My name is ***** ***** I'm happy to help with your question today.
Why did the couple not obtain life assurance?
Customer: replied 2 years ago.
That is difficult to answer. My brother in law may have said no or that he would find his own, but I am surprised the Coventry Building Society didn't insist on him either using their insurance or providing proof of a policy he had taken out on his own life.
Thank you for your help, much appreciated.
Alison.
Expert:  Alice H replied 2 years ago.
Thanks for the additional information.
I have looked at some of the terms and conditions that exist for secured home borrowing including the Financial Conduct Authority's handbook on mortgages.
I cannot see any legal obligation on the lender to ensure that an applicant has life assurance before lending. They have to check affordability and the borrowers ability to repay the mortgage but there is no obligation to ensure that a life policy is in place - that ultimately is a matter for the borrower.
If the wife feels this is unfair then she can certainly complaint to the building society and take the matter to Financial Ombudsman if necessary but even if the FO decides that the loan should not have been given that would not absolve the wife of liability to repay the borrowing.
I hope this assists. Happy to discuss further if needed.
Alice
Alice H and 3 other Law Specialists are ready to help you
Customer: replied 2 years ago.
Thank you for your prompt service and reply. I accept your comments and will now be able to put that out of my mind and concentrate on helping my sister financially. Pleasure doing business and I will use you again in the future.
Kind regards,
Alison.

Related Law Questions