SDKA raises title indemnity insurance limit to £250,000 for BTL borrowers

SDKA has increased the maximum loan size for its title indemnity insurance offering to £250,000.

The move aims to deliver cheaper and quicker residential BTL purchase completions.

The policy provides cover for a range of standard title-related risks, including certain matters relating to searches and restrictive covenants, which in turn helps reduce legal administration and minimise delays between application, legal instruction and completion.

SDKA said that this offering removes the need for local searches and reduces any delay.

The lender soft launched Westcor’s Perfect Title Policy last summer with an initial £150,000 limit, allowing a phased approach for SDKA to integrate the product into its processes, build operational experience and work closely with its legal partners to streamline the instruction-to-completion process.

The increased limit means more brokers and direct BTL borrowers can benefit from the increased title indemnity insurance.

Scot Tsang, head of operations and in-house legal at SDKA (pictured above), commented: “When we introduced the policy we chose to start with a £150,000 limit so that we could properly understand the product, embed it within our processes and work closely with our legal partners to seamlessly implement.

“We have seen clear benefits from the approach, particularly in helping to reduce costs and unnecessary delays by simplifying the way title risks are dealt with during the legal process.

“Increasing the limit to £250,000 is a natural step and allows more of our residential BTL borrowers to benefit from the product.”