Europe South Asia Asia Pacific Americas Middle East Africa BBC Homepage World Service Education



Front Page

World

UK

UK Politics

Business

Sci/Tech

Health

Education

Sport

Entertainment

Talking Point
On Air
Feedback
Low Graphics
Help

Thursday, August 13, 1998 Published at 18:53 GMT 19:53 UK


Business: Your Money

Lender launches gazumping insurance

Home hunters often end up out of pocket because of gazumping

Homebuyers in England and Wales may soon enjoy protection against being gazumped.

Lambeth Building Society has announced a trial of insurance for home buyers that will cover against gazumping and other unexpected problems after purchase.

The purchase insurance will cover buyers who are left out of pocket after gazumping - losing a property to a higher bidder after agreeing terms with the seller.

It will also cover events including the discovery of faults in the building after purchase and post-sale property valuations that come in more than 5% below the purchase price.

Cheap cover

Although only initially offered to Lambeth customers on a trial basis for 30, there are predictions the purchase cover will soon find a wider market through insurers.

A mortgage specialist, Patrick Bunton, senior manager at Chase De Vere Investments told BBC Radio 5 Live the policy is cheap and is likely prove popular.

He said: "I think it will probably become much more common. I think many lenders and insurers will now be looking at this as a contract they can offer."

Mr Bunton said the policy could well find acceptance among English and Welsh home buyers who enjoy little legislative protection from gazumping, unlike under Scottish law.



Advanced options | Search tips




Back to top | BBC News Home | BBC Homepage |


Your Money Contents

Internet Links

Lambeth Building Society


The BBC is not responsible for the content of external internet sites.




In this section

The growing threat of internet fraud

Online share dealing triples

Maxwell pledge to pensioners

Insolvent firms to get breathing space

Building society offers 1,000 windfalls

Financial services plan for millions

Why banks love online customers

Help for the 'financially excluded'

Abbey, Halifax raise mortgage rates

Banks accused of sharp practice

Endowment holders 'may win payouts'