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mortgage lendersand buildings insurance
jackidi
Posts: 7 Forumite
Hi,
We just took out a small mortgage in order to buy my mums council house. we organised buildings insurance through Direct Line. The Dunfermline Building Society who are our lenders for the mortgage say we have to pay them £25 for NOT using their buildings insurance. Can they do this? It seems like such a rip off? Anyone else experienced similar fees?
We just took out a small mortgage in order to buy my mums council house. we organised buildings insurance through Direct Line. The Dunfermline Building Society who are our lenders for the mortgage say we have to pay them £25 for NOT using their buildings insurance. Can they do this? It seems like such a rip off? Anyone else experienced similar fees?
0
Comments
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Hi,
Yeah Northern Rock do the same - you can either take their over the top mega priced insurance or they will charge you £25. I think you have to pay it, however I'll not be sending any money to them until I get a letter demanding it.0 -
A few lenders do this, so it's nothing out of the ordinary. It probably would have been stated somewhere in your mortgage conditions that you needed to take buildings insurance through them or pay an admin charge.
The charge is usually levied because buildings insurance is a must when you have a mortgage & the lender will need to get confimation of your insurance from direct line & also a copy of the policy to ensure it meets the mininum conditions they require.The bigger the bargain, the better I feel.
I should mention that there's only one of me, don't confuse me with others of the same name.0 -
lynnexxxo if you don't pay the £25 it'll just be added to the outstanding balance on your mortgage so you'll pay interest on it as well.0
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