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Mortgage Lender's Insurance

I'm just about to sign on the dotted line for a Bristol and West interest only buy-to-let mortage.

The paperwork says if I decide not to take out buildings insurance with Bristol and West then they'll make a charge of £25. Cheeky !!!!!!s! Is this common practice?

Comments

  • NeilQuinn
    NeilQuinn Posts: 162 Forumite
    It is with some lenders but they're getting fewer. I'd get a quote off them first..you may find that you'll easily recover the £25 by doing it yourself. Not sure how cheap / expensive B&West's insurance is.
  • I think it is only reasonable that B&W safeguard their money by insisting the insurance is adequate. £25 to check another company's policy seems reasonable.

    GG
    There are 10 types of people in this world. Those who understand binary and those that don't.
  • PBA
    PBA Posts: 1,521 Forumite
    I think it is only reasonable that B&W safeguard their money by insisting the insurance is adequate. £25 to check another company's policy seems reasonable.
    Especially in the current climate, I think this is fair. Most insurance policies don't cover BTL properties, but I've seen non-BTL policies sold by advisors trying to hit their targats. Therefore the lender has to make sure their investment is covered, and it's fair for them to charge for their admin fees in doing this.
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