The main reasons highlighted were financial difficulties, ‘gazumping’ or simply someone in the chain getting 'cold feet'. This has prompted leading GI platform The Source to introduce a Home Buyers' Protection product which covers clients’ upfront expenses if:
- The property is withdrawn from sale by the seller
- The client is 'gazumped' by a margin of £1,000 or more
- The client has to withdraw due to unforeseen illness or personal reasons
- The lender requires remedial works of more than 10% of the offer accepted
- The surveyors' valuation is less than 90% of the sum the agreed price
For a one-off fee of £79.50, clients get £1,500 cover for a range of upfront expenses including conveyancing, survey, and lenders fees, as well as any charges made by the broker themselves.
Alex McLauchlan, Head of Marketing for Source Insurance, commented:
“We have chosen to partner with Source as they lead the field with their choice of insurers plus their comprehensive GI platform providing our members with both a competitive and easy to use solution.“
Brian Coulton, Business Development Manager for Source Insurance, commented:
“It came as a surprise to us that quite such a large proportion of home purchases fall through. Our new Home Buyers Protection product covers the most common reasons for a property chain breaking down, giving clients four months peace of mind for just £79.50. It's a great little product and it's getting a lot of interest from mortgage brokers who are already in the habit of cross-selling home insurance.“
