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23 Aug 2007 12:00 AM by kirjim2 Star rating. 23 forum posts Send private message

Hi Everyone, I was quite shocked at the cost of this insurance and the fact that the beneficiary had to be the bank providing the mortgage.   This appears to be one of the conditions of the mortgage. This may have been dicussed before on the message board but I have trawled through all messages and have'nt so far come accross anything.  Anyone else come accross this?

 




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23 Aug 2007 10:44 PM by otterandy Star rating in Dubai - Carvajal. 260 forum posts Send private message

Hi, I didnt know that there was a compulsory life assurance policy tied to the morgage, how much are the preiums that they asking for?

Regards, Andy

 




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14 Sep 2007 4:51 PM by Rene35 Star rating in Holland. 87 forum posts Send private message

Dear all,

Today I had a conversation with my lawyer and he told me that the Caixa Galicia the bank from the developper wants me to get a life insurance of them.

Costs 250 euro / year.

I heard from Max thet this is not necessary to take it but the bank insist on it.

Does anyone have similar experiences with this bank?

The interest offer from Caixa galicia valid  till the end of the month is 5.3% for the first year after Euribor+0.75

But which Euribor they will take? for one month or 15 years?

Does anybody know the answer already? I could save a lot of money!



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Best Regards, René


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17 Sep 2007 4:10 PM by sharonw Star rating in Coin, Malaga. 281 forum posts Send private message

sharonw´s avatar

Hi Rene,

I have recently spoken to a fellow purchaser of Don Juan and she was told her life assurance would be €3K per annum (yes!!) then it was reduced to €700 per annum.     Even your quote of €250 sounds expensive.  There are quite a few lenders who do not require you to have life assurance for a mortgage.  The rate would be the annual Euribor and this currently stands at 4.76%. 

Hope that helps,

Regards

Sharon

sharon@tmasspain

www.themortgageservicegroup.com

 

 



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Regards

Sharon

sharon@tmasspain.com

 www.themortgageservicegroup.com

 



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17 Sep 2007 8:57 PM by westport Star rating in London & Co.Mayo Ire.... 509 forum posts Send private message

Hi Rene

We are also going with the developers mortgage,and our solicitor quoted us €550 for the life cover for the 2 of us and including building insurance. We were told we could cancel it after the first year. Good only knows how they can give an accurate quote for life cover without even knowing any medical history.

Westport 




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17 Sep 2007 9:51 PM by max! Star rating in Fuengirola. 944 forum posts Send private message

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An older post of mine from the completion topic:
I forgot to tell you about an interesting moment when completing. We had opted for the developers mortgage. At the end of the long meeting and after the notary left, the lady from the bank wanted me to sign a lot of papers (at least about twenty or so).
 
Most of them were related to the opening of a bank account with Caixa which is an understandable obligation. We also had to sign for an insurance on our part of the building. It looks we are allowed to change the specific insurance as long as we make certain there is one. Again very understandable, although none of these obligations were ever mentioned in earlier communications.
 
The last paper however was a nasty surprise. They expected me to sign for a very costly life insurance. I refused to do so.  I stated that I didn't know in advance, it was never mentioned and I didn't agree to it. I felt quite secure this time as we had all the necessary papers in our possesion by then. As we were all worn out by the extremely lengthy session I won the argument and left the building without signing this one. We would discuss it at a later time. I'll try to postpone it until after my death :)



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17 Sep 2007 9:53 PM by max! Star rating in Fuengirola. 944 forum posts Send private message

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In addition:
you can change the building insurance after a year as long as you make sure you have one. Don't know about the life insurance as Í refused to sign, so I don't have a copy of the conditions.



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26 Sep 2007 7:41 PM by sam Star rating. 28 forum posts Send private message

Hi,

Having just completed I can say the building and contents Insurance we got from Caixagalicia is 215 Euros per year.This is a two bed with contents cover 24,000 and buildings 80,000 euros.

Life cover was 360 euros

I assume the buildings is low as we already own the land etc. 

Steve and Sam




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