Bank charge for not taking Builings Insurance ??

pizzaman1

Can A Bank/Building Society charge you for not taking out their Buildings Insurance :mad: ?????

Alliance and Leicester charge £25 which has to be added to the mortgage, if you don't take out their buildings Insurance.

Is this allowed ????

dacouch

They can charge you this, up until a few years ago many mortgage providers "Insisted" you took out their Building Cover at inflated premiums. The government decided this was an unfair practice so stopped them doing this but allowed them to make a charge of £25 for their time in "Inspecting your policy".

If you complain to a superviser they will often waive it, especially if you tell them that they have been overcharging you for years and now to rub salt into the wound they want £25. They will often drop the charge especially if you are polite but firm about it.

Alternatively sometimes your new Insurer will pay the £25 for you.

Bear in mind A&L may try and charge this again if you change Insurer again in the futuure.

P.S At least you have got away from the high premiums and are no doubt saving a fortune

Phlik

The mortgage advisor wondered why I started laughing when she mentioned the £25 fee for not taking their insurance .

I chose to remortgage with ING Direct in the end, and very glad I did. Now paying 1.89% interest, as opposed to a fixed rate at 5%+ I would have been on with A+L.


Phlik

dacouch

Just don't take your home insurance with whoever you do your mortgage with its the most expensive way of covering it oh and shop round for your life insurance too as the same applies