Alliance Leicester - Mortgage ( Building Insurance )

darkcloudi

I am a first time buyer and just wanted some advice.

I checked the mortgage offer and one of the terms states that if I don't take A & L Building Insurance they will charge £25. Can they do this?

Its riduculous charging this for me not wanting there insurance.

mattbroker

you'll find this with a lot of lenders,its pretty standard. they miss out on the commission they would've made if you'd taken the insurance out with them.you're not alone!however,if you hunt around and find a decent b&c deal,then the savings you make will probably cover this.

hope this helps!

jackie_w

Hi There,

I used to work in insurance, and there are some insurance companies who will take £25 off your insurance premium if your building society charge you for not taking the insurance policy out with them.

If you havent taken the insurance out yet, its worth shopping around and asking this. Even if you go to an insurance broker/agent, tell them about the charge they should be able to advise you.

Personally, I would try to avoid taking the insurance out with the building society because usually they usually only sell the one policy, and they can be quite expensive.

lianne1978

When we got our mortgage with a & l we took their building ins. as part of the deal they were offering for one year. In the second year we had a quote sent to us and we decided to stay as it was competitive. In the first year the building ins. was probably over priced but considering what we saved on the mortgage it was worth it.