Another Mortgage fee, fair??

Anthony_MK

I am renewing my mortgage with the West Bromwich, but I am not renewing my House Insurance with them (no longer compulsory). They have written to me telling me what they expect my new provder to be meet 5 or 5 terms, which seem fair enough. They then tell me that they will be charging me £50 admin fee for checking and approving my new policy, which I must send to them.

Is this fair? It seems they are trying to make it too much hassle/£££ to change providers. When I am already paying them another £1,000+ for the pleasure of staying with them and paying an extra £100 a month for the privelage!

Advice please.

Anthony_MK

Forgot to add. They also want me to get my new insurance company to make 6 changes to their standard policy and send it to them for approval. If I dont then they are refusing to let me cancel my insurance with them, insurance that is 200% more expensive than my new company.

Andy_L

They have to check the new policy protects thier interest in you house. This takes time and thus money.
Since you can save £200 with a different insurer you'll be £150 up on the deal. Some insurers used to offer to pay this fee for you - could be worth a further shop around

dwsjarcmcd

This fee has been tested many times, however, I was under the impression that the maximum fee a lender could apply for this service was £25, not the £50 West Bromwich are applying. Also as the house is their security, they are only interested in the buildings cover, not the contents which is none of their business

MarkyMarkD

There's no limit on this type of fee. Lenders can make insuring the property with them a compulsory term of the loan, if they so choose. Or they can charge any fee they like for not accepting their insurance.

If you don't like these terms, remortgage elsewhere.

Anthony_MK

Thats fine. I dont like it but its a good mortgage deal that has been withdrawn since application.

Thanks for the replies.