Buying a property can be stressful, especially if a sale falls through, as you will lose any money which you have already paid for a home survey, legal costs or lending charges. Having Home Buyers’ Protection Insurance can help you to claim back some of the money you have spent.
There are a number of reasons why a sale may fall through, including a seller withdrawing the property, a vendor accepting a higher offer, repair work being required on the house, or the property being valued at less than you have offered. According to statistics, around one third of all property deals fall through, costing the buyer thousands of pounds in some cases.
Home Buyers’ Protection Insurance will cover losses in a variety of circumstances, meaning that you will reduce your losses if a sale falls through. Although it may seem reasonable to think that a property sale be completed without any difficulty once a sale price has been agreed, it may fall through at any stage in the process.
If you decide to take out a policy, check the circumstances in which you are covered, so that you are aware of any risks. There may also be restrictions in place, which may mean that you aren’t covered, so it is crucial to check all documentation carefully.
One of the jobs of a mortgage adviser is to be able to help you decide if Home Buyers’ Protection Insurance is required, as they have CeMAP training to help them identify all the potential risks when buying a home.
