Cyprus Property Forum for Buyers, Sellers & Investors

Hello Nigel.

If you could help us on this one please.

Aprox five years age a member of our family took out a mortgage on their property and was told by the bank providing the mortgage that they would have to take out property insurance and life insurance with them and them alone,or they would not give them a mortgage.

I have just seen their contract/mortgage papers and the life and property insurance premiums seem absolutele astronomical.

They have never defaulted on their mortgage payments and wonder if there is anything that they can do to reduce the colossal insurance premiums,such as go elswere?

Thanks as allways

Terry Liversidge

footy123 wrote:Hello Nigel.

If you could help us on this one please.

Aprox five years age a member of our family took out a mortgage on their property and was told by the bank providing the mortgage that they would have to take out property insurance and life insurance with them and them alone,or they would not give them a mortgage.

I have just seen their contract/mortgage papers and the life and property insurance premiums seem absolutele astronomical.

They have never defaulted on their mortgage payments and wonder if there is anything that they can do to reduce the colossal insurance premiums,such as go elswere?

Thanks as allways

Terry Liversidge

Yes, you can change to another insurance company. Under EU law the banks can no longer hold you to this. I will even dig out the EU directive if needed, as I don't have it to hand right now.

They did the same to me and I have changed and told them to get stuffed, they were charging me a fortune. Don't let them tell you it is obligatory as you signed, tell them the EU allows other suitable companies to provide this.

Stand your ground.

Thanks Pantheman we will certainly look into this.If there i any further info you can give we will certainly check it out.

Terry Livesidge

Pantheman,,thanks ever so much for your reply.Could you please inform me of the EU directive in this matter as you say you could.

Thanks again Terry Liversidge

footy123 wrote:Pantheman,,thanks ever so much for your reply.Could you please inform me of the EU directive in this matter as you say you could.

Thanks again Terry Liversidge

OK, I'll get the directive from my broker and post it, please wait a little.

Pan

Pantheman wrote:

footy123 wrote:Pantheman,,thanks ever so much for your reply.Could you please inform me of the EU directive in this matter as you say you could.

Thanks again Terry Liversidge

OK, I'll get the directive from my broker and post it, please wait a little.

Pan

Have asked for it, waiting to get it. From what I understood it was an instruction from the CBC that banks have to accept suitable alternative policies. Perhaps they (CBC) got it from a directive. In any case, my daughter has just done the same.

OK the info I had relates to a law of the Republic, namely:

Law 2001 39(1) para's 37 - 39 being the most important. I have the it, but it is in Greek.

This was issued by the Central bank, so any branch trying to refuse, needs to be told otherwise.

Hope this helps

Thanks ever so much Pantheman,,we will quote this law if the bank refuses to allow us to change insurances.

Terry Liversidge