Flood insurance agreement is good news for borrowers and lenders

11 Jul 08

The CML welcomes the announcement by the Association of British Insurers (ABI) and government that flood insurance will remain widely available. This agreement gives confidence to both homeowners and mortgage lenders.

CML head of policy, Jackie Bennett, commented:

“We welcome the announcement that flood insurance will remain widely available in the future.

“Insurance is an essential requirement for a lender to grant a mortgage. The agreement reassures both homeowners and mortgage lenders which is important in the current environment.”

Notes to editors

1. The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 98% of all residential mortgage lending in the UK. There are 11.8 million mortgages in the UK, with loans worth over £1.2 trillion.