fees for not taking insurance with lender

Lind234

Hello

I have just received a letter from N& Peterborough saying that they are reviewing mortgages and because I am not using them for my house insurance, I have to get them named on my policy and send them copies and I will be charged £25 for the privilege by them. I am not sure what my Insurance company will charge me either!

They say this fee is on my charges from the original mortgage which I took out in 1998 and this is the first time they have asked for this.

Can they do this?

maninthestreet

Is it mentioned in the mortgage documentation from 1998 or not?

dunstonh

Yes they can do it. A few lenders still do it. It used to be nearly all of them but its been on the decline for years. Many still had it available to charge if they wanted but dont enforce it.

The insurance company will charge nothing as having the lender named is a requirement with most lenders. Although again, its not one they tend to check though with most.

Lind234

It must be but I have not checked this yet