From 4th August, HSBC UK implemented new requirements in section 21.1 of the Mortgage Lending Instructions and Guidance Notes concerning buildings insurance:
- For mortgage lending under £5 million, conveyancer must record the insurer’s name, policy number, and the insured amount. This information is essential to safeguard both the customer and the bank against the risk of uninsured properties.
- For mortgage lending exceeding £5 million, a copy of the insurance policy must be provided to HSBC UK prior to CoT submission and the release of the mortgage.
HSBC UK have been contacting conveyancers to check that the information is being recorded on mortgage lending under £5 million and have found that not all conveyancers are aware of the requirement. Please ensure your teams understand and are complying with the Mortgage Lending Instructions & Guidance Notes.