lollyk

Hi
We are just about to complete on a mortgage with Bankinter for a property that we already own in Spain. We didnt take a mortgage out when we bought the property and are taking a cash out mortgage now to release some money. After waiting 6 months for the relevant paperwork to get sorted and get to the offer stage - Our lawyer in spain is due to sign the papers on our behalf next monday. The bank has now emailed me with some forms to be signed. They have now said we have to take their life cover to cover the amount borrowed - which is fine but its over 400 euro a month for a 67000 mortgage!!!!! Does anyone know if we agree to this so that we can complete on the mortgage can we then cancel the life ins after?? Or is there a way they can force us to pay back the money they lend us if we cancel the life ins. Dont have a problem with covering the mortgage but the life cover is a rip off.
Thanks on advance for any advice

Mitzyboy

Thats ridiculous, but if its oart of the conditions of the mortgage, you sign it, and the revoke the insurance then you will be in breach of the mortgage and they can take action to recover the monies.

Why not ask if you can arrange your own life insurance as I'm sure you'll get it cheaper than that

lollyk

Apparently we have to take their life ins - wont accept english cover or spanish from another company!

valenciatim

Are you sure that it is €400 a month and not just for the first month? When I took out a mortgage, there was an annual insurance cost, split over the first 3 months. The following year, I queried the amount, and the Bank manager queried it with the insurance people, He then told them to poke it and arranged a cheaper policy elsewhere!

Katya

Hi There

We have had a problem with life cover too ! We took out a small mortgage in October for a property here in spain. The bank took 4 weeks of humming and haying etc about the mortgage - giving us replies each day such as "we feel you have too much money" !!! Anyway the day before we went to Notary we were asked to go in an sign the mortgage. At this stage we were advised that we required Life Insurance(As it was LAW) - we stated that we already more than enough cover but was advised in order for the notary appointment we needed this in place. They agreed that we could for 0ct-dec and then come january shop around for cheaper insurance.
So we did - We went to our branch to get the correct details of what we were required to do - which was to go into the branch with the new policies showing the beneficiary as the bank. So off we went to Easyinsurance and the policies were loads cheaper - My husbands was something like 800 euro per year and with easyinsurance 300 and mine 400 and now 163. Bearing in mind the same amount of cover in the Uk costs £10 per month
Anyway we take the policies into the branch and then they advise it was a condition of our mortgage to have their life polocies.

I didnt agree with any of this and have been fighting it since - we advised that
1. The mortgage offer did state we needed life cover but Nowhere did it say it had to be with the bank

2. We were advised to shop around and get cheaper policy

The responses we got back were unreal - the best being after they compareed the cover given by them and easyinsurance was that we required to have the additionals which the bank insurance offered - which was medical helpline , 5,000 euro credit card cover.
I kept at it as this is just nonsense - anyway yesterday the bank cancelled my husbands insurance and has advised that i need to keep my cover until oct and need to give them 2 months notice of cancellation.
Apparently legally they only require 1 life to be covered - Tough if the other one dies!! - They advised me of this yesterday - but the day before Notary they said both needed covered??
Its not the ideal solution but we are half way there - instead of paying 800 euro a year for my husbands cover - we can pay £10 a month

Katya

Katya

We were the same - 1st payment was for Oct-Dec and then the policy runs from jan-Jan

Katya

Katya

Dont believe them as we were told exactly the same !!! And we are half way through sorting ours out !!!

lollyk

Ok thanks for the replies guys - Maybe I have got my wires crossed - he didnt actually state monthly on the email I have just presumed. but as it has been such hard work getting them to this point I have maybe presumed the worst. I have queried it and am waiting for a reply so fingers crossed that I have just got it wrong. Dont really want to argue it too much with them as they are the only bank that would agree to lend to us as a cash out loan as we are self employed and we really wanted to release some money as we cant sell the place.

CBANDY

I have the banks life insurance and it only costs me 26 euros a month.

lollyk

I have heard back from the bank it is annual doh!!! It still seems v expensive though but we will sign for now and will look around for a cheaper policy at the end of the year. Thanks for all you replies