Buying a property is an exciting milestone, but it can also involve significant upfront costs before contracts are exchanged. This case study demonstrates how Home Buyers Protection Insurance can help reduce the financial impact of a property purchase falling through, giving buyers greater confidence throughout the home buying process.
The Situation
James H., from York, was in the process of purchasing a new home after an earlier property purchase had unexpectedly collapsed.
During the previous transaction, James had already paid for legal work, surveys, mortgage valuations and other associated costs before the seller withdrew from the sale. As a result, he lost a substantial amount of money and had nothing to show for the expenses incurred.
When he found another suitable property, James wanted to avoid facing the same financial loss again if the purchase did not proceed.
The Challenge
"The last property I tried to buy fell through at a late stage and I lost money on surveys, legal fees and mortgage costs. I didn't want to take that risk again without having some form of protection in place."
– James H., York
Having already experienced the financial impact of a failed property transaction, James was understandably cautious about committing further funds to another purchase.
Like many buyers, he knew that circumstances outside his control could still prevent the transaction from completing. Issues such as chain collapses, adverse survey findings, mortgage complications or a seller withdrawing can all result in a purchase failing before exchange of contracts.
James wanted reassurance that if the worst happened again, he would not be left carrying all of the financial loss himself.
The Solution
James was introduced to a specialist provider offering Home Buyers Protection Insurance.
The policy was designed to help protect certain costs incurred during the purchasing process if the transaction failed for qualifying reasons outside of the buyer's control.
Areas considered included:
- Conveyancing and legal expenses
- Survey costs
- Mortgage valuation fees
- Mortgage arrangement fees (subject to policy terms)
- Protection against qualifying failed purchase costs
The cover was arranged shortly after his offer had been accepted, helping ensure the policy was in place from an early stage in the transaction.
The Outcome
The property purchase ultimately proceeded successfully and James completed on his new home.
Although he did not need to make a claim, having Home Buyers Protection Insurance in place provided reassurance throughout the transaction and reduced concerns about potentially losing money again if unexpected issues arose.
Key Outcomes
- Greater confidence during the property buying process
- Financial protection available if the purchase failed for qualifying reasons
- Reduced concerns following a previous failed transaction
- Peace of mind when committing to surveys and legal costs
- Successful completion of the property purchase
Client Feedback
"After losing money on a previous purchase, I wanted some reassurance before spending money on another one. Knowing the protection was there gave me much greater confidence throughout the process."
– James H., York
How Home Buyers Protection Insurance May Help
Home Buyers Protection Insurance can be worth considering for buyers who are concerned about losing money if a property purchase falls through before exchange of contracts.
While every policy differs and eligibility criteria apply, protection may be available for certain costs incurred during the buying process where the transaction fails for qualifying reasons.
Home Buyers Protection Insurance may help provide reassurance during the property buying process by offering cover for certain costs if a purchase does not proceed as expected.
