This article contains a reminder regarding common causes for claims in relation to mortgages.
Failing to put in place proper security for lender clients was one of the most costly mistakes in our mortgage claims in the last policy year (2017/18) where the total mortgage related claims accounted for 19 per cent of the cost of all claims.
We have recently updated our Keep managing mortgage risk practice risk guide which contains claims examples and risk management strategies to avoid these mistakes. It also covers other important risk issues in mortgage matters including:
- providing solicitor certificates and Amadio claims
- clients wanting to enter into improvident transactions or transactions with family members
- mortgage fraud
- advising on equity release products.
Checklists to help you advise on equity release products and avoid Amadio claims are also included. If you advise lenders, borrowers or guarantees, the practice risk guide is an essential resource.
