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Halifax Mortgage - Insurance added yearly - what is it ???

Does anyone know what the insurance is added at the beginning of the year to the actual mortgage account... as my mum.had it fo 13 years and doesn't know what it is ??? Any help what be great

Comments

  • R_P_W
    R_P_W Posts: 1,527 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    What do Halifax say when you ask them?
  • Goldiegirl
    Goldiegirl Posts: 8,806 Forumite
    Part of the Furniture 1,000 Posts Rampant Recycler Hung up my suit!
    They'd say it was the buildings and possibly the contents insurance.

    With this sort of insurance, they debit the mortgage account every year with the premium and the customer is sent a letter to confirm the amount of the premium.

    The customer can

    a) pay the whole premium in full immediately and pay no interest.

    b) pay it monthly, and incur a small interest charge

    c) never pay it, so it's added to the mortgage and lots more interest is charged over the whole term of the mortgage.

    It would appear that your mum wanted the Halifax the insure the property, so they've been collecting the premiums in this way. and she'd get a letter every year to advise her of the premiums

    There's nothing to stop her cancelling the Halifax cover and making her own arrangements. But whatever happens she MUST have buildings insurance cover, as this is a condition of the mortgage.

    And before you ask, no, there is no mis-selling, because she must have property insurance
    Early retired - 18th December 2014
    If your dreams don't scare you, they're not big enough
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    Does anyone know what the insurance is added at the beginning of the year to the actual mortgage account... as my mum.had it fo 13 years and doesn't know what it is ??? Any help what be great

    I have a crazy idea..your mother asks Halifax?
  • Thanks RPW and Goldiegirl... Andy she has and awaiting a reply but you know how long these banks take...
  • R_P_W
    R_P_W Posts: 1,527 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Thanks RPW and Goldiegirl... Andy she has and awaiting a reply but you know how long these banks take...

    No not really
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    She will get an insurance renewal letter through each year. That will tell her what she's covered for.
  • She's never received these letters
  • Goldiegirl
    Goldiegirl Posts: 8,806 Forumite
    Part of the Furniture 1,000 Posts Rampant Recycler Hung up my suit!
    She's never received these letters

    Not being rude or anything, but if she hasn't noticed an insurance premium being debited every year, isn't it possible she hasn't noticed the annual letter either.

    Also, don't forget, building insurance is essential.

    If the Halifax insurance wasn't in place she'd be uninsured, with all the risks that go with it.

    It''s actually a good thing that the property is insured
    Early retired - 18th December 2014
    If your dreams don't scare you, they're not big enough
  • Goldiegirl wrote: »
    Not being rude or anything, but if she hasn't noticed an insurance premium being debited every year, isn't it possible she hasn't noticed the annual letter either.

    Also, don't forget, building insurance is essential.

    If the Halifax insurance wasn't in place she'd be uninsured, with all the risks that go with it.

    It''s actually a good thing that the property is insured

    Agreed; I'd rather pay over the odds for building insurance than not have it.

    And it'll definitely be a condition - my mortgage with Nationwide doesn't include insurance, but makes it clear that I must have it elsewhere.
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    She's never received these letters
    Yes she has.
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