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Switching Home Insurance - Admin Fee?
PhilMayger
Posts: 24 Forumite
My mum is just in the process of moving her buildings and contents insurance away from the "special rate" deal that the Mortgage provider do, to one that we've found that over £200 cheaper. The mortgage company want to charge her a £50 admin fee for doing so. Is this correct?
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Comments
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If that's in their agreement/policy/T&Cs then yes.0
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It used to be a very common charge but not many charge it now. However, it is valid and lawful if it is in the T&C. Usually its £25. Is the charge being made because the insurance isnt being changed at renewal but mid term?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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It used to be a very common charge but not many charge it now. However, it is valid and lawful if it is in the T&C. Usually its £25. Is the charge being made because the insurance isnt being changed at renewal but mid term?
I'll request a copy of the T&Cs as I can't see any mention of it in the paperwork that she has. This admin fee was mentioned after his failed attempt at "beating" the new quote, so I'm wondering if its an attempt to scare her into it. The policy is due to be renewed 1st Jan, so its not like she's half way through the policy either.0 -
Also speak to the "new" insurer, some [perhaps many?] offer to pay the admin fee, or at least some of it, if your mum's mortgage company charge for switching.PhilMayger wrote: »I'll request a copy of the T&Cs as I can't see any mention of it in the paperwork that she has. This admin fee was mentioned after his failed attempt at "beating" the new quote, so I'm wondering if its an attempt to scare her into it. The policy is due to be renewed 1st Jan, so its not like she's half way through the policy either.0 -
When she called back to finally cancel the policy, no mention was made of the admin fee at all. All they wanted to know was that the amount of insurance was correct etc etc. Maybe it was a pressure selling tactic?0
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