very annoyed with mortgage provider, where do I stand?

burns

Hi,

I have posted on this forum before about how my mortage provider is trying to "force" mortgage/critical illness/unemployment insurance on us.

I spoke with them today and I am seething with anger and I would like to know where I stand.

I'm worried that they will turn around tomorrow and say that they are not willing to give us a mortgage because they deem us to much of a risk. They have agreed the mortgage in principle. Initially I did think that it would be an good idea to have all the insurance etc but now I it seems unneccesary. What annoys me most is that the bank keep questioning my decision, thay just won't take no for an answer!

where do I stand, can they deny me a mortgage if I dont take out mortgage protection?

Thanks

Mr_helpful

No Not really. You are best seeking independent advice for the insurance anyway it will most likely be cheaper.
Technically they can deny anyone a mortgage but its very unlikely. Its just that the salesman is looking at a big target i expect.

dunstonh

I was reading about this in an FOS briefing a while back. They cannot insist upon their insurance as a condition of lending. However, they can refuse to lend you the money.

So, solution is to tell them you will do it but use an independent. Most of the times its just the lender's salesperson trying to bully you into taking it out with them.

Leon_W

Agree with dunstonh. It is likely that you will be overpaying for any insurances arranged through the bank, and although they cannot insist you take it, I have known lenders dig their heals in and decline a mortgage, even though they shouldn't do this.

If they don't let up you could threaten them with taking your mortgage business elsewhere although please be sure that you are able to do this before throwing toys out of the pram !!!. I'm sure they wont want to see this business walk out of the door.

Worst case scenario, take the insurance, cancel it and see an independent.

_Andy_

HSBC by any chance?

burns

did you have a similiar problem?

Jarlawuk

Some sales people will try to scare/bully you into taking the insurance because of the commission involved. Doesn't mean you have to take it though.