Integrated home insurance with mortgage

xCarrieHx

Hi

I took out a mortgage with Halifax about 10yrs ago and my home insurance is taken annually by adding it to My mortgage. I can't find my original documents but presume I must have signed something to say it was ok. At the time I didn't understand what it meant but now I can see the interest on my mortgage is on my house insurance too. I've now cancelled my house insurance from my mortgage and have it separate but I must have paid I fortune in interest on the annual £480 for the insurance

I feel like I've been duped and have paid way too much for this. Is this normal practice to include insurance with a mortgage? Any info/advice welcome

-taff

Sometimes if you take advice from a mortgage advisor they sell you insurance as part of the deal, you pay them for the insurance, they give you 'free' advice.

Since then however, you have been free to change the insurance to any other provider when your premiums became due.

Dunston will be along shortly with more info

dunstonh

I can't find my original documents but presume I must have signed something to say it was ok.

It would likely have been a tick box on the application form.

At the time I didn't understand what it meant but now I can see the interest on my mortgage is on my house insurance too.

At the time I didn't understand what it meant but now I can see the interest on my mortgage is on my house insurance too.

With most lenders, the home insurance premium is taken from a sub account with nil interest applied to it. A small number of lenders use a chargeable sub account but the premium and the payment tend to offset each other resulting in little or no interest.

but I must have paid I fortune in interest on the annual £480 for the insurance

Unlikely. Probably havent paid any but if you have, it wont be much.

I feel like I've been duped and have paid way too much for this. Is this normal practice to include insurance with a mortgage? Any info/advice welcome

For building societies, that was the most common way until around 10-15 years ago. Since then, monthly direct debit standalone was the norm.

You have not been duped.