In a right-to-buy transaction, title insurance covers the lender for any shortfall which could occur on repossession as a result of it taking second charge to the local authority.It also removes the need for a deed of postponement. This protects the lender, significantly simplifies the process, and reduces the time to completion. The lender is protected, the broker receives the proc fee sooner, and the customer gets a fast turnaround.
Gary Chalkley, operations director at Victoria Mortgages, commented: “We’ve experienced continuing strong demand since launching our right-to-buy proposition - we remain a nation of home owners, and the desire to own your own home affordably has never been stronger. The need for deeds of postponement has always been a necessary frustration in this market, so we’re delighted that title insurance now allows us to offer our clients a speedy completion.
“We’ve designed our products and processes to be very straightforward for the packager community and deliver a rapid turnaround on mortgage approvals. By using title insurance we can guarantee there’s no waiting period under our right-to-buy products as there is with other lenders, so packagers receive their fees sooner and the borrower’s remortgage completes sooner. L&E was the obvious choice of partner as it can add speed and a new level of security to our proposition.”
Christian Bearman, sales director at London & European, commented: “It’s possible that the government will decide to reduce the discount available to would-be-owners for right-to-buy in order to discourage the practice and ease the lack of affordable housing in the UK. If this happens we could see a surge in the right-to-buy market as people rush to secure the current high discounts under the scheme.
"Victoria Mortgages has made a splash in the market with its unique set of products, including mortgages for high rise flats and non-standard constructions, and is well placed to respond to demand. We look forward to supporting its future growth through our title insurance solutions – helping it deliver simple, fast and secure property transactions.”
