why must I pay NOT to take buildings insurance with my mortgage?

jackidi

Hi,

We recently took out a small mortgage with the Dunfermline Building Society. We were told to organise buidings insurance for the property by our mortgage advisor. I did this through Direct Line who we insure everything else with. The Dunfermline are now charging us £25.00 for NOT taking their buildings insurance. Can they do this? It seems like such a rip off? Has this happened to anyone else?

Look forward to your comments.

cattie

You recently asked this same question here http://forums.moneysavingexpert.com/showthread.html?t=521968
& got replies, so why are you asking again? The answer will still be yes, they can do this & it's something many lenders do, not just your particular lender.

purply

What a coincedance-similar story here-kind of.

I have just got off the phone to Zurich who have arranged my home insurance-well its the first I've heard of it!

Got a letter this morning stating my DD details and how much was going to be taken out by Zurich.
Rang them and basically what's happened is that my mortgage is with Alliance and Leicester who have passed on my details onto Zurich-now I remember clearly not wanting it-way too expensive-Post office home insurance was £150 less and we went with them.

I remember now that A and L did state that if we did not take their mortgage they would charge us (think it ws £30-maybe £25).

Anyway, Zurich have said its all gonna be cancelled,, so hope all is well there. They were really nice about it.

The upside is that as far as I know we may not be charged by A and L for NOT taking it, but you never know.

But I agree with you-why should you be charged?? It usually works out way more expensive than other places-shop around.