A&L Mortgage 'compulsory' house insurance?

ZD0701 · 2 July 2013 at 6:58PM

Hi,

First post so here goes....

We took out an A&L mortgage in 1994 and were told it was compulsory to take out their house insurance as part of the deal. With all the PPI claims flying around it got us thinking about whether this has now been determined as bad practise? Does anyone have any ideas on if we have a claim!?!?!?!

Thanks

Wywth · 2 July 2013 at 7:40PM

ZD0701 wrote: »

Hi,

First post so here goes....

We took out an A&L mortgage in 1994 and were told it was compulsory to take out their house insurance as part of the deal. With all the PPI claims flying around it got us thinking about whether this has now been determined as bad practise? Does anyone have any ideas on if we have a claim!?!?!?!

Thanks

The house would have to be insured if it was mortgaged (and frankly should be insured anyway)

You don't have to take the mortgage providers insurance (it's often quite expensive) but most mortgage providers make a small fee (about £30) the first time you don't take their cover. Some mortage providers will waive this fee on request as a gesture of goodwill, and if not, many insurers will offer to pay it for giving them your business.

The first year can sometimes be difficult to get insurance elsewhere as the mortgage provider may will often want the property insured from exchange of contracts but you will have difficulty in getting anyone else to insure a property that you don't actually own and has strangers living in it (which essentially is the situation from exchange to completion)